Uncertainity Surrounds KIFCO In Kabwe

From CHAMBO NG’UNI in Kabwe
UNCERTAINTY surrounds the future of cash-strapped Kabwe Industrial Fabrics Company (Kifco) following the board’s decision to place the company on care and maintenance.
Management says the closure of Kifco is temporary and aimed at facilitating the installation of new equipment at the plant.
But over 150 workers fear that the company might not resume operations any time soon and they could be declared redundant.
Kifco operations manager, Chabala Mutuna said in an interview that the new owners of the company, Technet Zambia Limited, want to replace obsolete equipment to revamp operations.
Mr Mutuna said this is why management has decided to send workers on leave to enable an Indian company to install new equipment worth US$1.4 million.
“The board and management discussed with the union on the need to close down the plant so that we complete the plant before operations can resume. There is nothing strange about this,” Mr Mutuna said.
Mr Mutuna said Kifco will be closed for about two months with effect from this week.
“We can’t be operating when the plant is being rehabilitated. This is a normal practice and payments are being processed. Rejuvenation of the company is quite critical,” Mr Mutuna said.
He said Technet Zambia Limited, a local company, is investing huge sums of money to revive the company
But workers complained that the performance of the company has been poor for a long time and they have not been paid their salaries for several months.
Union branch chairman, John Kalulu said workers want to be paid their salary arrears before they are sent on forced leave.
“The workers want to be paid their salaries before they are sent on forced leave because we have been told that they want to install equipment. But workers are in doubt,” Mr Kalulu said.
In September last year, Kifco chief accountant Gilbert Tembo told Kabwe district commissioner Patrick Chishala during an impromptu visit to the company that workers had not been paid since July last year.
Mr Tembo said management had projected that by September last year the new machinery purchased at US$1.2 million would have been installed and commissioned for full production to start.
This is in contrast to the US$ 1.4 million which Mr Mutuna said Technet Zambia Limited will invest in new equipment.

Posted by Editor on January 11, 2014. Filed under LATEST NEWS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry