Workers at OK Zimbabwe Limited have been dealt a major blow after the retail giant suspended all salaries and wages with immediate effect. In effect, the company is asking workers to work without pay.<\/p>\n
A resolution signed on 22 May 2026 by the company\u2019s Joint Works Council said OK Zimbabwe \u201cwill, therefore, not be running any payroll beginning the month of May 2026 until further notice and in any case until such time that business and revenue return to profitable levels\u201d.<\/p>\n
The decision was signed by Works Council Chairman Alex E. Siyavora, National Workers Committee Chairperson for Managerial staff Isaya Mutema, Corporate Rescue Practitioner Bulisa Mbano of Grant Thornton Zimbabwe, and National Workers Committee Chairman Givemore Dondo.<\/p>\n
\u201cThe suspension decision is an attempt to stabilise the business en route to full recovery and mitigate the impact of current poor performance and revenue,\u201d the resolution states.<\/p>\n
The resolution claims OK Zimbabwe \u201chas agreed with its staff\u201d to suspend all salaries and wages.<\/p>\n
OK Zimbabwe was placed under corporate rescue on 24 February 2026. The board took the decision at an emergency meeting on 23 February, unanimously resolving to appoint Bulisa Mbano as Corporate Rescue Practitioner.<\/p>\n
The scale of the collapse has been shocking. In the 11 months to February 2026, revenue fell from US$245 million to US$40 million, an 84% drop, while units sold declined from 208 million to 32 million.<\/p>\n
The company also had US$38.7 million in current liabilities against just US$12.8 million in current assets, a deficit that left it unable to meet its obligations.<\/p>\n
Fifteen underperforming stores were closed as part of early rescue measures, leaving 54 outlets still trading, many of them distressed.<\/p>\n
The Joint Works Council said the payroll halt was \u201cpursuant to the corporate rescue proceedings\u201d and aimed at \u201cturning around the business and placing it back onto a profitable path\u201d.<\/p>\n
\u201cThis is a difficult and uncomfortable measure but a necessary intervention in our efforts to turn around the business,\u201d reads the resolution.<\/p>\n
The Joint Works Council said it would \u201censure compliance with relevant labour laws governing such adjustments.\u201d<\/p>\n
Related:<\/b><\/p>\n
OK Zimbabwe Placed Under Corporate Rescue<\/p>\n
Harare City Council Workers Threaten Strike Over Unpaid December Salaries<\/p>\n","protected":false},"excerpt":{"rendered":"
Workers at OK Zimbabwe Limited have been dealt a major blow after the retail giant suspended all salaries and wages with immediate effect. In effect, the company is asking workers to work without pay. A resolution signed on 22 May 2026 by the company\u2019s Joint Works Council said OK Zimbabwe \u201cwill, therefore, not be running […]<\/p>\n","protected":false},"author":84,"featured_media":116895,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6],"tags":[],"class_list":["post-116896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy"],"yoast_head":"\n