The Zambia Congress of Trade Unions – ZCTU has called for a management review and shake up at state owned telecoms company Zamtel following the company’s failure to turn around their operations and improve its financial performance in an industry that is highly lucrative.
The unions mother body stated that there is more that needs to be done if Zamtel is to start making profits and have a stable workforce that can deliver for the telecoms company. The Zambia mobile phone operators market is limited with only three players with the other two behind Airtel and MTN which are all privately held and highly profitable businessses.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZCTU Director of Research Bornface Phiri said instead of just resorting to cutting jobs for staff members, there is need to review if the management of Zamtel itself is what is causing the financial and operational challenges which the company is facing.
Phiri said there is need for a deeper review of the various issues and the problems the telecoms firm is facing for it to start generating the needed benefits. He stated that looking at the industry in general, and the company specifically, you can appreciate that Zamtel is viable but the problem seems to be the top heavy management cost as about 90% of the revenue collected by the company goes towards administrative costs.
The ZCTU Director of Research told ZBT that “there is need to re-consider the management composition and structure if the company is to start making profit.” He however said he was aware that there are some workers who have been sent on redundancy for the purpose of making Zamtel profitable.
Phiri further confirmed that he was aware of some departments which are being phased out, but that the company should ensure that this is not targeted at non-management staff, when the losses may be caused by some inefficiencies at management levels.
