Local Company To Retrench 2 000 Workers Due To U.S. Sanctions | Report
Fossil Group, the parent company of Fossil Agro and Fossil Contracting, is reportedly set to retrench 2 000 employees after it was added to the United States sanctions list on Monday.
Businessman Obey Chimuka, Fossil Agro, and Fossil Contracting were among four individuals and two companies that were placed on the list for their association with businessman Kudakwashe Tagwirei.
Tagwirei and his company Sakunda Holdings were added to the sanctions list in 2020.
NewZimbabwe.com reported a source as saying the group, which currently employs 3 000 people, has cited foreseen viability challenges as a result of the sanctions. Said the source:
As early as this morning (Tuesday), a meeting was held where it was hinted that more than 2 000 employees will lose their jobs.
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The meeting was centred more on reasons why the organisation had been sanctioned, especially considering that the main issue which had been picked up in the circular was the owner’s relationship with Tagwireyi.
It was agreed that sanctioning of Fossil Group was biased as the company was not even the main beneficiary of any project it was currently involved in; from road construction where Bitumen World and Masimba Holdings lead.
In command agriculture, there were more than 10 firms supplying inputs and Fossil Agro was not the only company government contracted, nor was it the largest. FSG which is white-owned was the largest company.
Zimbabwe says the sanctions are hurting the country’s economy but the U.S. disagrees, saying corruption and wrong priorities are the problem. | NewZimbabwe.com
