Production at Zimbabwean CKD assembler Willowvale Mazda Motor Industries (WMMI) has now been on hold for the 12th consecutive month as employee payment issues continued to “stifle” operations at the Harare firm, a local report said.
According to AllAfrica.com, the company, owned by the government, has amassed a massive $1.5m debt, owed mostly to Mazda Motor Corporation of Japan.
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There have been several several reports of workers receiving only half their salaries, but WMMI said it had not breached any contracts or agreements.
A representative of the WMMI declined to comment to just-auto when contacted by phone.
AllAfrica.com said the company’s troubles “continue to worsen amid reports the government recently spent $20 million importing top class new vehicles for ministers and their deputies”.
Reports claimed that the government wass also planning to spend another $10m on new vehicles for members of parliament.
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By GlobalDataWorkers at the factory, speaking anonymously, reportedly claimed the company had only paid half wages to more than 200 staff.
There have also been rumours among the employees that the company intends to remove the workers from the payroll and put them on a basic US$100 allowance – a move that would likely violate the local Labour Act.
However, AllAfrica.com reported, WMMI financial director, Charles Gobvu, said that to his knowledge every worker received full salaries, with only the latest September payment still due.
The company hoped that production would restart soon but, in the meantime the factory – and workers – would try to survive by selling its “rolling stock of cars”, the report added.
