Zesa Says It Cannot Pay Workers $120 Million In Salary Arrears From 2012 Agreement

Struggling national power generator, Zesa Holdings, has said that it will not pay its workers over $120 million in salary arrears despite the threat of a potential strike. The money is from a 2012 collective bargaining agreement which Zesa is arguing is now before the courts. The power generator said that it did not have the capacity to pay the wages and argued that to do so would negatively impact its ability to deliver electricity.

Said Zesa,

The power utility reiterates as always, that it has no capacity to pay the substantial back pay and, the unsustainable increase in employment costs arising out of the said Collective Bargaining Agreement.

…we are happy that an overwhelming majority of the employees accepted the offer.

A minority of employees, however, did not accept the settlement offer and continue to press for the payment of salaries and benefits at levels beyond which the Power Utility can pay.

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