ZESA SET TO RETRENCH HUNDREDS IN RESTRUCTURING

By SBT | Business

ZESA Holdings is preparing to retrench hundreds of employees as part of a major restructuring exercise aimed at improving the efficiency and financial position of the power utility. Some workers have reportedly already been informed that their jobs will be affected as the company moves to reorganise its operations.

Cabinet has approved the restructuring of the ZESA Group, which is expected to bring electricity generation, transmission and distribution under a more streamlined structure. Energy and Power Development Minister July Moyo said the company would mobilise resources internally to finance the restructuring, including payments to employees leaving the organisation.

He said some workers had volunteered to leave, while others had reached retirement age. Employees selected for retrenchment would be treated in accordance with the Labour Act.

The exercise will also involve reducing excess staffing through natural attrition, retirement and retrenchments. The Government says the restructuring is intended to create a more efficient operating model, improve coordination across the electricity value chain and strengthen ZESA's financial sustainability.

However, the planned job cuts are likely to raise concerns among employees and labour representatives, particularly over the number of workers affected, the terms of separation and the utility's ability to finance the exercise without worsening its financial position. ZESA has not, in the information provided, disclosed the final number of employees to be retrenched, the implementation timetable or the total cost of the exercise.

The restructuring marks a significant change for the state-owned power utility, which plays a central role in electricity generation, transmission and distribution in Zimbabwe.

ZESA retrenchments