By A Correspondent- Police details this morning dispersed striking Pepsi workers.

The workers, totalling about 500 are reportedly earning a paltry ZW$700 monthly.

However, ZimEye is in possession of the salary schedule for Indians at the firm whose salaries are in United States dollars.

Below is a schedule:

Said one worker:

“….we have been asking for a pay rise since time immemorial to no avail….from our salaries, one can only buy 5kgs of mealie meal and some tomatoes and that money is finished. The money is equivalent to US$8.”

One of the worker revealed that the company is owned by Indians and one of them is named Rajiv Jaipuriya.

Watch the live video loading below…..

ZimEye is currently contacting management and shareholders at the company for a comment.

We publish below a notice of intention to strike by the workers.

TO:
Cc: Varun Beverages Zimbabwe Limited Management
DATE: 25 June 2020
RE: STATE OF AFFAIRS OF LOCAL HUMAN RESOURCES AT VARUN BEVERAGES ZIMBABWE LIMITED

INTRODUCTION

It is with great discontent and exasperation that we as the human resources at Varun Beverages Zimbabwe Limited (VBZL), highlight the misfortunes under which the company is operating.

This informative letter seeks to clearly and plainly expose the umbrella of economic, social and political brutality which the “investor” is under. This issues highlighted in this report are of deep concern, as signified by emerging trends of abuse, racism, economic and social victimization of local Zimbabweans at foreign owned companies in particular VBZL.

Our country leadership has opened up both the democratic and economic space to allow for mutual beneficiation of stakeholder countries through creating shared value.

It is surprising to note that VBZL has unfortunately mistaken this initiative to go on a rampage looting spree, simultaneously leaving behind a trail of malcontention and destruction through the following:

1. Victimization/Racial Discrimination/Human Rights Violation
   It is apparently clear that the 2 races (Zimbabweans & Indians) are failing to cohabitate and co-exist under the current scenario. This is because the Indians view themselves as “warlords,” using intimidative techniques & extremely abusive language at plant workers and employing autocratic/military style tactics to run a beverage manufacturing company. At this rate, if let to go scot-free, a tragic case (similar to the one involving a purported Chinese investor and 2 Zimbabwean workers) can be experienced at the company. On the 21st of June, Zhang Xuelin shot dead 2 natives over a salary dispute in Gweru. Earlier on this year, the executive chairman of ZESA, Sydney Gata, recommended a remedy of repatriating Chinese managers who are abusing workers at Sino Hydro Corporation. The Indians at VBZL are exercising gross human rights violation. Several workers are prepared to come forward and testify against a bucket-load of on-going incidents especially from managers which include Suresh Paul (Engineering Manager), Vikas Chandra (Production Manager) and Sunil Bhatt (Factory Manager).These 3 men are causing unrest and havoc and workers are immediately and unanimously calling upon their repatriation. Racism and human rights violation is a strong moral issue among Zimbabweans.
2. Extremely Low Remuneration
   It’s disheartening to realize that VBZL has become an architect of economic slavery in Zimbabwe. Though our forefathers went to war to resist colonial power, little did they know that the imperialist would return under the guise of “investing.” We as workers at VBZL are suffering from humiliating and embarrassing salaries. As if it’s not enough, those who ask for salary adjustments are seen as rebels and are immediately ear-marked for contract termination.
   Yet, in every street corner a case of VBZL drinks are being sold for amounts between 4.60 USD to 5 USD and the factory is producing between 42000 to 49000 cases on a daily basis even during the winter period. The employees themselves cannot even dare to buy these drinks as this amount will considerably consume a large percentage of their disproportionate salaries.
   The surprising fact is that the company enjoys recruiting skilled technocrats whom they term to be desperate and have nowhere else to go. The majority of workers have volunteered to bring forth their payslips and prove the figures. Soon after earning the humiliating salaries (which are credited at the pleasure of management ) ,the workers scatter in different directions to secure foreign currency to pay for standard living costs such as rentals ,food and childrens’ tuition fees. The company enjoys hiding behind the NEC stipulated figures which obviously do not work and are a mere joke for a serious business. In as much as price controls and interbank rate controls have proved to be fruitless in Zimbabwe, so does salary control through NEC.
   When it comes to NON-NEC workers, salaries are equally pathetic because they are decided upon by Indian managers against unknown benchmarks. It is impossible to sustain a family whilst working at VBZL under these circumstances .The amounts cannot simply add up. That is the reason why VBZL has got a very high labour turnover rate. With management, hiring and firing is like a game of cards to them. Quantitative analysis will show that the total labour force at VBZL is not out of norms such that if we were to calculate productivity per capita (production contribution per person), the ratio will be so favorable to the company. Why does company want to pretend as if the product is not being sold in USD? After every 30 days, we are severely worn out through chasing parallel market rates which are endlessly rising. We as workers will even be very happy to receive our salary in the form of product. We can easily form our own consortium, sell the product, and pay ourselves in USD. Most companies have developed both an RTGS and USD component for salaries because they understand the local scenario very well and they value their human resources .Is this the case with VBZL? Why does the product price increase 3 times before salary is increased 1 time? If management values its human resources, why is this problem persisting?
3. Selective payment of USDs to Indians
   It is then baffling and bewildering to realize that Indian managers and Indian machine operators are allocating themselves hefty dual USD and RTGS salaries. There is no secret to this because the workers have seen many of their salaries which are in their thousands. Indians live comfortable lives in Zimbabwe, with lucrative allowances for food, transport and accommodation. They have so much surplus to the extent that the biggest percentage of the money is repatriated back to New Dehli, Bombay, Mumbai, Chennai and their different home provinces. What costs do the Indians incur which are not incurred by Zimbabweans? If Indians are getting hefty salaries in both USD and RTGS, Zimbabwean workers can also handle salaries in USD and RTGS.
4. Managerial & Technical Roles
   Zimbabweans are occupying non-managerial, non-technical and non-rewarding roles in VBZL.To a large extent there is no skills development in the company and competency is not required at all. Indians are in charge of everything and have instilled a belief that the Zimbabweans are not able to run the company alone. Management wants to retain milky and lucrative positions for the Indians whilst Zimbabweans are given general roles which they assume deserve very little rewards.
   The Finance head : Indian ,COO : Indian ,Factory Manager : Indian ,Engineering Manager : Indian ,Quality Manager : Indian ,Production Manager : Indian ,Dispatch Manager : Indian ,Stores Manager : Indian and all key technical positions are occupied by Indians. Where are the Zimbabweans? Yet on the contrary, notable companies which have been producing beverages in Zimbabwe for some time now which include Schweppes, Delta Beverages, Dairiboard, Afdis and Probottlers. There is no process nor equipment which VBZL brought to Zimbabwe which is new in the country. What is the game at play here?
   The answer to this is that qualified and competent Zimbabwean technocrats are not wanted at all by the company. Management wants to create an Indian dynasty which feeds on hefty salaries.
5. Duration of Contracts, employment termination, Improper grading, working Hours
   How does a company which has employed individuals for more than a year, then start to develop short term contracts which are pegged at 3 months? Which local labour law are they using? At the same time, there are no employment termination procedures practiced at VBZL.The rights are said to be with the Indians who usually fabricate issues to try and get rid of the intelligent ones.
   These poor workers have been working every single day, being given no breathing space, and are labelled as criminals when they decide to give themselves off-days.
   A company the size of VBZL strives to run along with a non-flexible 3 -shift system, where it is essential to have a 4-shift system. As they work, most of them don’t even know their grades. They are told that they are not machine operators yet they are actually operating the machines. Why are they not given acting allowance in this regard?
   The whole human resources management system needs an overhaul. Indian managers have no idea of how Human Resources procedures are structurally executed and they do not bother to consult the Human Resources Department on local matters .In fact, the Human Resources Manager (a Zimbabwean by default) got so frustrated and left the organization due to incapacitation and being rendered irrelevant.
6. Creating Shared Value (CSV)
   It is apparently clear that there is a major difference in business principles and ethics between the franchisor (PepsiCo.) and the franchisee (VBZL).Recently, PepsiCo acquired Pioneer Foods in South Africa through a R26 bn deal. Of particular importance to note, are the terms and conditions which are packaged in the deal .Due to functional Black Economic Empowerment (BEE) policies in South Africa, workers will greatly benefit from the strategic alliance. Workers will get shares worth R1.6 bn through a locally held workers trust, which will pay dividends to workers. Programmes such as supplier development funds, entrepreneurship development funds and scholarship are all benefiting locals through the deal. Instead of Indians bragging about the organization and claiming that they are politically connected, they should take corporate notes from PepsiCo and learn how to formulate and apply business policies in foreign markets. One thing for sure is that the Indians have great respect for PepsiCo and would never want to mess up the franchisor in any way. Workers have no benefits to talk about through association with VBZL and the company shows no interest at all in creating shared value.

CONCLUSION
The highlighted issues have forced workers to come together and directly confront VBZL. There are no established dialogue channels in the company and management is vividly keen to quickly suppress any worker complaints issues. All issues highlighted in this report are factual and precise.

In fact, our brothers and sisters in Zambia had already seen the traits of the same company and in July of 2017 they protested with anger and bitterness against oppression. We here at VBZL are also tired of the company mistreatment and mismanagement.

We are highly civilized and do not believe in violence as a tool of expression. We are prepared to meet with management at the table and strongly believe that our government and PepsiCo are ready to engage and act in a professional manner.
Regards
VBZL Workers.

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