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Patrick Chitumba Midlands Bureau
The windfall for former employees of the defunct Zimbabwe Iron and Steel Company (Ziscosteel) who have been receiving part of their outstanding salaries backdated to 2009 has resulted in businesses in Redcliff and Kwekwe recording brisk pickings.

Furniture shops, restaurants, night clubs and Redcliff and Kwekwe councils are reportedly recording brisk business as the former employees have been buying furniture, grocery and paying for their bills with the windfall. At the same time, nite clubs are also recording brisk business, with ladies of the night increasing their charges from $ 3 to $10 per client. Fast food outlets have also been recording brisk business. Shops in Rutendo and Torwood, which had closed, have also reopened as business is booming.

The former employees started getting their outstanding salaries following an agreement with Government to settle their pay arrears in tranches beginning last month. Redcliff mayor Councillor Fred Kapuya said they were optimistic of receipting over $3 million from 400 employees who bought houses from council, but had been failing to settle their debts since Ziscosteel had not been paying them.

“This is a positive development for the ex-employees and the local authority as well. They have been receiving their outstanding salaries and some have been attending to the water and rates, while others paying towards owning the houses we sold them. The livelihood of the people has changed for the better as they now have some money in their pockets to spend on furniture, food, clothes, and other possessions like cars,” he said.

Furniture shops in Kwekwe also recorded brisk business with the former workers buying beds, wardrobes, fridges and kitchen units for their families.

“We are making three to four deliveries to Redcliff every day and this is brisk business,” said a manager at a popular furniture shop in Kwekwe.

From last month, the former Zisco workers have been receiving part of the payment from Government after entering into an agreement to pay the outstanding salaries in tranches. Ex-Zisco workers union chairperson, Mr Benedict Moyo, confirmed that the former employees had received part of their payment. Mr Moyo said the workers received one month salary, but would not disclose the actual figures.

“I can confirm that former Zisco Steel employees have started getting their outstanding salaries,” he said. “They recently received one month salary.”

Government and Zisco workers have been at loggerheads, with the workers demanding that Government followed proper procedures of terminating contracts as stipulated by the Labour Act and also emphasized that there was a need for Government to pay the outstanding salaries before retrenching the workers.