30% ex­ec­u­tive pay cut bears fruit for URL

Chronicle (Zimbabwe) - - Business Chronicle -

BULAWAYO-BASED ed­i­ble oils pro­ducer United Re­finer­ies Lim­ited’s (URL) de­ci­sion to im­ple­ment a 30 per­cent pay cut for ex­ec­u­tives two years ago has started to bear fruit, chief ex­ec­u­tive of­fi­cer Mr Bu­sisa Moyo has said.

“As a com­pany we took a bold de­ci­sion to im­ple­ment a 30 per­cent pay cut for all ex­ec­u­tives. It was not easy for the top man­agers, hav­ing to part way with some al­lowances and re­duced salary. But this was a bold de­ci­sion to get the com­pany go­ing,” Mr Moyo told a re­cent busi­ness meet­ing in Mutare.

United Re­finer­ies se­cured lines of credit in 2013 to re­fur­bish ma­chin­ery at its Bulawayo fac­tory, which helped re­vive pro­duc­tion of sev­eral brands. But op­er­at­ing costs re­mained high, a prob­lem the com­pany ad­dressed by slash­ing the salaries of its high­est earn­ers.

“The pay cut was ef­fected in the month of De­cem­ber 2014 and as a com­pany I can say we are now ben­e­fit­ing from this de­ci­sion. We are back to prof­itabil­ity, which is good for the com­pany,” said Mr Moyo with­out giv­ing fig­ures.

Mr Moyo, who is also the pres­i­dent of the Con­fed­er­a­tion of Zim­babwe In­dus­tries (CZI), said in as much as salary cuts are not wel­comed by most if not all em­ploy­ees, they were a nec­es­sary mea­sure to keep com­pa­nies afloat.

He urged other com­pa­nies fac­ing op­er­a­tional chal­lenges, espe­cially in the pub­lic sec­tor, to con­sider salary cuts in­clu­sive of top man­age­ment.

United Re­finer­ies Lim­ited is the sec­ond largest cook­ing oil re­fin­ery in Zim­babwe and has a refin­ing ca­pac­ity of 8 000 met­ric tonnes of oil seeds per month. Its ca­pac­ity util­i­sa­tion has im­proved from 66 per­cent ca­pac­ity in 2014, to over 80 per­cent cur­rently, Mr Moyo said.

The agro-pro­ces­sor man­u­fac­tures cook­ing oil un­der the brands Roil and Sun­shine; toi­letries un­der Im­pala, Olive, Bath & Basin, Vogue, Im­age and Fresh Health Joy brands.—The Source.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.