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A worker packs beer bottles inside a Delta plant in Harare

Nelson Gazadza Business Correspondent
Delta Beverages is embroiled in a dispute with its employees over the “diversion of proceeds” of Old Mutual demutualisation funds to a trust fund.
Workers committee chairman Mr John Shumba told a Parliamentary Committee, the trust fund was started in 2001 after the company had been given money from Old Mutual as a pension fund for employees who have been serving the organisation.

“Upon receiving the money, the organisation did not give the money to responsible beneficiaries but instead formed a trust fund called the Delta Beverages employees fund.
However, company secretary Mr Alex Makamure said that it was the Delta Beverages pension fund, which held the shares as it was the one which invested in Old Mutual prior to its demutualisation.

“The Trust received some shares like all other policy holders. These shares are part of the pension fund’s assets, which are managed by a fully constituted Pension Fund Board. The demutualisation did not accrue to individual participants in the pension fund.”

Mr Makamure said pensions by their nature are retirement assets that are only accessed in terms of the regulations as read in conjunction with rules of the fund.

The company operates two employee share schemes: The Share Participation Scheme — established in 1990 — all employees that attain five years of service participate in the dividends paid by company.

The scheme has about 14 million shares with 2 450 participants. The employees have each received a net of $150 each per year in dividends.

The second scheme has to do with empowerment. Some 20 million Delta shares were allocated to permanent employees in E Grade and below in 2008 with each getting 5 000 shares. Beneficiaries participated in dividends until August 2013 and with  the shares vesting as beneficial shares thereafter.

Forfeitures for those leaving prior to serving 5 years unless proceeding on retirement or due to death. The scheme matured in September 2013 and the bulk of the employees opted to cash in. A total of 14 million shares were sold for $18 million with each employee getting a pay-out of $6 000.

Mr Shumba however said: “These have not been paid to date and in place of that we are receiving an annual dividend of $100, thus we are saying we still need our money equivalent to the trust fund,” he said.

The workers said everything is shrouded in secrecy not even on the company’s indigenisation plan.

Mr Shumba said the committee is not even aware of contents submitted to the Ministry of Indigenisation saying everything was done without consulting them.

“Everything is shrouded in secrecy and anytime we ask to consult on the issue we are told everything has been submitted and it’s an issue now behind,” he said.

Mr Makamure however, said the company has conditions of the Indigenisation Act with regards the setting up of an Employee Trust through the two schemes.

“Delta’s scheme is 100 percent employees as management grades only participate in share options.”

The committee’s secretary Mr Chrispen Chandaita said the company retirement packages favoured senior managers opposed to ordinary workers. He cited that the Mandel Training Centre was given as package to retired senior managers.

“Depots such as Chivhu, Sanyati, Nyanga and Murehwa were given to retired managers as benefits,” he said.

Meanwhile, on the suspended beverages industry strike, Mr Shumba said the workers are waiting for audience with the Minister of Labour to deliberate on the way forward.

“What we are saying is the salaries to be aligned to the poverty datum line currently at $540 be for the least paid worker,” he said.

Currently the least paid worker at Delta is said to be earning $272 net.