Union rejects RioZim offer, rescue bid deepens
A Zimbabwe mining workers’ union rejected a 160,000-dollar settlement from RioZim Limited to drop corporate rescue proceedings against the diversified resources company. The Zimbabwe Diamond and Allied Minerals Workers Union said the offer failed to address employee welfare and company viability concerns. RioZim proposed the payment through its lawyers on condition the union withdraw all court cases and consent to appeal a judgment restricting asset transactions.
The union demanded full salary payments, job security commitments, and plans demonstrating feasible recovery strategies before accepting any agreement. RioZim chief executive Rajgopal Swami urged the union to stop blocking recapitalization efforts that could resolve employee arrears. The company operates gold, diamond, and coal assets but has struggled with financial problems since 2022, stemming from a geological shift at its Cam and Motor mine that requires 35 million dollars in infrastructure upgrades.
