Darker spots emerge in CSC deal

ZIMBABWE’s Retrenchment Board has rejected government’s claims that it granted the sacking of over 140 Cold storage Company (CsC) workers after a partnership deal was inked with a British investor about three years ago.

After inking a deal called “Livestock Joint Farming Concession Agreement” (LJFCA) with the government in 2019, Boustead Beef, the British investor, approached CsC workers with a retrenchment plan.

Government controlled 100% shareholding in the business before the deal was sealed.

“Notice is hereby given to Beit T Rinashe and 140 others, being the non-managerial employees that CsC intends to retrench you with effect from 1 February 2020 in terms of the Labour Act,” Boustead’s letter said.

“As communicated to you, on 25th september 2019, the company has not been operational for more than 15 years hence the four months annual shutdown of all abattoirs and sales depots to enable the retooling of the plant(s),” Boustead added.

“Boustead Beef Zimbabwe (Pvt) Ltd on behalf of the Republic of Zimbabwe/CsC wishes to lawfully terminate all permanent employees on secondment. This will pave the way for Boustead Beef to carry out its recruitment and selection processes in preparation for the full production set to commence at the end of 1st quarter 2020,” said the letter, which was signed by Reginald shoko, a consultant for Boustead.

It said retrenchment packages would include two weeks salary for each year served and payments for three months' notice.

It said workers would also be paid for accrued leave due.

Boustead followed through its action by informing the 141 affected staff that they had been retrenched.

One of the letters obtained by businessdigest said: “On the 1st February 2020 the Republic of Zimbabwe requested Boustead Beef Zimbabwe (Pvt)…to retrench …on their behalf because the new company will have to constitute a new structure and new employment terms and conditions in line with the best practices of international corporate organisations…”.

“This prompted the Boustead Beef Zimbabwe management to initiate a process of lawfully terminating all CsC permanent seconded employees by issuing a notice of intention to retrench,” said the letter.

“This was followed up with a meeting and consultations between the Boustead Beef Management and …which was finalised on 19th March 2020,” added the letter.

But in his opposing affidavits to the lawsuit seeking nullification of LJFCA, Peter Mudzamiri, acting permanent secretary in the ministry of Lands, Agriculture, Water, Fisheries and Rural Resettlement, said employees challenging the deal had already been retrenched.

However, businessdigest has obtained a letter from the Retrenchment Board denying giving a nod to the retrenchment of workers.

The letter is dated October 5 2022, and is addressed to CsC’s workers committee.

“The Retrenchment Board did not issue any confirmation to the CsC,” the letter said.

“There were issues raised in terms of section 12D and 12C (of the Labour Act), hence the file was returned to CsC to rectify the anomalies,” noted the board.

Five CsC workers have approached the High Court in Bulawayo seeking nullification of the LJFC deal.

They are represented by Mutuso, Taruvinga and Mhiribidi.Boustead and the Ministry of Lands and Agriculture are cited as first and second respondents respectively.

“The purported contract entered on 22 January 2019 by the first respondent and Ministry of Lands, Agriculture, Water, Fisheries and Rural Resettlement be and is hereby declared null and void and (of) no legal effect,” the workers said.

“All actions taken by respondents on the basis of the null and void contract referred to above be and are hereby declared void ab initio,” the workers said.