Massive losses hit Zampost forcing boss to suspend his salary, cut workers’ allowances

Massive losses hit Zampost forcing boss to suspend his salary, cut workers’ allowances

Screen Shot 2015-06-09 at 23.46.37The Zambia Postal Services (ZamPost), is in very deep financial crisis such that the Chief Executive Officer has suspended his salary for three months and is cutting most allowances for workers.

And Zampost’s main source of income has dropped from K2.9 m in January 2014 to an average of K1.2 m per month in 2015.

In response, the government has advised Zampost to retrench workers as a way of saving money.

According to a Circular signed by the Post Master General McPherson Mumbi Chanda, Zampost is now surviving from car sales and DSTv commissions.

‘I must state that if it were not for the additional commission earnings from the new initiatives such as Car Sales, DSTV,Road Tax, Motor Vehicle Insurance .etc the Corporation could have most likely ground to a halt by now,’ Chanda told workers in his circular dated June 8, 2015.

Chanda told workers that the fall in frevenue from Swift cash has resulted in serious financial difficulties in meeting monthly expenditures as well as supporting new business development.

He said that Zampost is facing huge difficulties to sustain the payments of retiree’s terminal benefits resulting in new court cases. Chanda said ZamPost also owes various lending institutions (old) debts which the lenders are no longer willing to defer.

He said NAPSAhas also taken the Zampost to court for failure to remit contributions over the past several years.

Chanda disclosed that ZamPost’s staff costs amount to 90% of all operating costs.

The Post Master General said that it had been been agreed with the Union that to mitigate the impact of downsizing, Management should as much as possible offer ‘alternative low – cost contracts instead of lay – offs at lossmaking Post Offices’.

He said the special allowance of K500.00 awarded last year shall be deferred for four (04) months effective June 2015.

‘To lead on this path of necessary sacrifice, a voluntary decision has been made that payment of my salary as your Chief Executive Officer will also be deferred for three months. I will be on half – salary effective June 2015,’ Chanda said.

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