Hwange Colliery has began implementing its turnaround strategy and has introduced cost cutting measures among them a voluntary retrenchment programme, top management salary reduction and cuts on working employee hours.
Having failed to honour its obligations for the past three years and accumulating over US$72 million in outstanding salaries, Hwange Colliery company has begun implementing its turnaround strategy introducing a host of measures among them a payment scheme to settle arrears.
Among the measures will be cost cutting mechanisms which include a review of the human resources policy says Hwange Colliery managing director Engineer Thomas Makore.
“We look at the cost of employment, we have had to look at the human resources policy, the benefits that our staff enjoys and compare them to other mining players in the country. Our cost of employment is much higher than in other companies. That HR policy will result in cost saving and us to operate with cost per tonne that is comparative,” he said.
Hwange Colliery is the major coal producer in the nation supplying both local and regional markets.
The company has however been struggling to produce to maximum capacity due to issues such as obsolete equipment, generally poor coal producer prices and the undercapitalisation.