Econet retrenches 100 workers as revenues fall . . . Affected workers to be offered shares

ECONET Wireless Zimbabwe (EWZ) announced yesterday that it had retrenched 100 workers with immediate effect following the marked drop in revenues as a direct consequence of Potraz (Postal Telecommunications Regulatory Authority of Zimbabwe)’s directive to cut tariffs by 30 percent.

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On October 16 last year, the regulator instructed mobile companies to cut tariffs to 15 cents per minute effective December 2014 from the maximum 23 cents per minute that was being levied by operators.

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Econet is however still contesting the directive in the courts.

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The latest staff cull brings the number of workers that have been retrenched to 130 since the beginning of the year.

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EWZ’s group chief executive officer Mr Douglas Mboweni indicated that in order to incentivize “speedy closure” to the exercise, the affected workers will be awarded shares in the mobile giant over and above their terminal benefits.

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“The shares are not part of the retrenchment package but are an incentive for speedy closure of the retrenchment process that will reward long service with the company. This award will only be available to those employees who have been identified for retrenchment, who voluntarily agree to abide by the process and time-frames outlined in the retrenchment process. The award of shares will be done after the retrenchment process is completed,” explained Mr Mboweni.