Labour Union Refuses Offer to Stop Corporate Rescue Push

RioZim faces union backlash after offering US$160,000 to stop business rescue proceedings, with labour leaders demanding court-supervised restructuring to safeguard jobs, pensions, and transparency (image source)

A stalemate has opened between labour and management after a major mining company offered a cash settlement intended to halt formal business rescue proceedings, a move the country’s largest union says would short-change workers and leave long-term protections unaddressed.

Union leaders say the US$160,000 offer tabled by mining firm RioZim Ltd was presented as a quick way to resolve wage claims and avoid protracted legal processes, but representatives rejected the sum as inadequate and lacking structural safeguards for redundancy, pensions, and health benefits. An unnamed shop steward at the company described the tone of the meeting as “transactional” and said members felt the offer treated them as “an accounting line item rather than employees with families to support.”

Workers said management tried to frame the payment as generous given the company’s liquidity squeeze, while union representatives insisted on court-supervised business rescue that would bind creditors, managers, and investors to a transparent restructuring plan. At a midday rally outside the company’s administrative block, employees chanted for a “fair rescue” and demanded audited accounts and binding assurances before accepting any settlement.

Independent labour lawyers and restructuring experts view the union’s rejection as strategically significant. A Harare-based labour attorney argued that lump-sum settlements can allow companies and investors to discharge immediate liabilities without fixing governance failures that led to insolvency — a pattern that can leave residual risks for employees and taxpayers. A restructuring adviser added that court-supervised rescue processes provide oversight, creditor negotiation mechanisms, and enforceable terms that can better preserve jobs than private agreements.

RioZim’s board defended the settlement as a pragmatic move to provide immediate relief for affected workers while preserving operational liquidity for recovery. In an internal memo seen by staff, executives said rapid settlements would stabilise operations and shield viable divisions from collapse. Management declined to comment publicly when approached at the company gate.

Labour economists say the dispute could shape future precedents in Zimbabwe’s mining and resource sector. If private payouts continue to replace formal rescue frameworks, analysts warn, worker protections could weaken and the true extent of corporate distress could be obscured from creditors and regulators. Next steps to watch include the court’s handling of the rescue petition, forensic audits demanded by unions, investor disclosures, and whether regulators impose transparency requirements on settlements designed to avoid full business rescue proceedings.