Sable Chemical Industries Limited

INTERNAL CORRESPONDENCE
AT: Sable
FROM: Chief Operating Officer
AT:Sable
TO: Sable Workers

Date: 19 December 2023

DATED 11 DECEMBER 2023

Subject: COLLECTIVE GRIEVANCE NOTICE

December 2023
acknowledge receipt of the Grievance Notice. duly received on the 12th of
We
as followS
Management hereby responds to the above grievances
CONTRACT
GRIEVANCE 1: BREACH OF EMPLOYMENT
when ZESA switched
of operational challenges since 2016.
As you are aware. Sable has had a lot company could not
electrolysis plant. This meant the
off power and effectively disabled the fertiliser.
material in manufacturing Ammonium Nitrate
produce ammonia gas, the primary raw
the plant's productivity and revenue generation.
The lack of ammonia gas significantly affected from South
business imported ammonia gas directly
The only plan became productive when the unsustainable as it depended on the availability of
Africa. The importation of ammonia gas was The
not generate due to the subdued productivity.
USD workingcapital, which the company could
through the banks, but unfortunately, these
company has tried to apply for USD allocation shareholders have now tried to apply for
applications have not been granted. Management and
are currently being considered. This was
various facilities through international banks, which
meetings (please refer to Works Council
mentioned and highlighted in all the Works Council
minutes) and the various Town Halls
employer, in terms of the employment
Although we remain cognizant of our responsibilities as the
then applied for special measures
contract. without production and lack of revenue, Management
company to pay what it can afford. These
at the NEC to request an exemption to allow the
Council and agreements on the
applications were made following consultations with the Works
communication were hampered by the lack
way forward. Subsequent efforts to ensure continuous
CouncilAgreements.
of a Workers' Committee, which meant we could not have Works'
of the employment
We would like to reiterate that Management is not deliberately in breach
affairs at Sable Chemicals
contract but cannot meet its obligations due to the current state of
1.1 The basic salaries for the period July 2023 to December 2023.
salaries wil
Following the conclusion of the CBAfor July 2023 - December 2023, the newbasic
on notice boards for the benefit of ail!
be as per the schedule below, which shall be posted
employees.
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Sable Chemical Industries Liited

NEC SABLE NEC OLD SABLE OLD NEC NEW MIN SABLE NEW
GRADE GRADE MIN MIN MINIMUM
A1 173.69 180.64 200.00 208.00
A2 197.14 205.03 227.00 236.08
A3 223.75 232.71 257.65 267.95
81 253.96 264.14 292.43 304.12
B) 288.24 299.79 331.90 345.18
83 327.16 340.26 376.71 391.78
B4 371.32 386.20 427.57 444..67
BS 421.45 438.34 485.29 504.70
C1 478.35 297.52 550.80 572.83
10 C2 542.92 564.69 625.16 650.16

The company is committed to paying the outstanding salaries when productionsteadily picks up
andalso whenever we are able to raise funds through other initiatives. Payment will be made as
business improves. This was noted in several Works Council meetings and Town Halls
GRIEVANCE 2: UNFAIR LABOUR PRACTICES BY THE EMPLOYER
Management and the Shareholders are aware that some of the CBA Agreements have not yet
been implemented due to the lack of production and subsequent delays in the payment of salaries.
Management has in the past applied for exemptions from the National Employment Council
(NEC). which have been granted. We have also implemented special measures which affected
all employees, including executive management. As mentioned above, management has
engaged employees in several sessions and applied for special measures at the NEC. These
measures were being done not because management did not want to pay or acknowledge the
obligations but to ensure that Sable remains a going concern so that it can access credit for
working capital to fund the daily activities of the company and boost the productivity of the plant
which will result in the generation of revenue to meet all other obligations, including payment of
salaries.

Implementation of the 2023 CBAs

For the January to June 2023 CBA, management shall implement the CBA accordingly in May
and June 2023, as the company was exempted from implementing the same for January to April
2023. For July to December 2023, the company shall implement the CBA in full for July, August.
September and October 2023; for November 2023, the CBA shall be implemented at 66% (as
per the special measures in place).
GRIEVANCE 3: SALARY DEDUCTIONEFFECTED BUT NOT REMITTED TO THIRD PARTIEs
LE. NYARADZO, ZIMNAT LIFE AND SABLE CHEMICALS MEDICAL AID FUND
This grievance is aresult of a low revenue, as explained above. Until Sable starts production.
meetingongoing financial obligations will remain challenging. However, Management has put in
place structures to assist employees in times of difficulty, such as the death of a loved one or a
medical emergency. Management and the shareholders are working hard to ensure that the
 Saht:
Sable Chemical Industries Limited

necessary financial packages are accessed for working capital, enabling these policies to be
resuscitated.
GRIEVANCE 4: COMPENSATION FOR PREJUDICE OR LOSs SUFFERED AS A RESULT OF
NON-PAYMENT OF SALARIES
Management is addressing this issue to ensure that employees are not prejudiced by late
payment of salaries. This was discussed in several Works Council meetings on 8 July 2022 and
the
10 February 2023. We are consulting with the Board, anda proposal will be put before
Workers Committee.
GRIEVANCE 5: MANAGEMENT DID NOT GIVE NOTICE FOR EXEMPTION APPLICATION
Reference is made to the COO'S Address - Townhall meeting held on Thursday, 16 November
2023, in which employees registered their concern about management's failure to engage,
consult and give adequate notice to employees before applying for exemption and inmplementing
short time. The COO took cognisance of the concern and apologised to the employees, which
Management
was duly accepted. Through various engagement and Works Council meetings,
are
has made the issue known and will, as we advance, continue to ensure that employees
informed of ongoing efforts to resuscitate the business.
policy to facilitate continued
As management, we are committed to maintaining an open-door addressed all the
Communication between parties. It is my sincere hope thatT have captured and
satisfaction. Should you require any further
issues raised in the collective grievance to your
clarification or explanation, please do not hesitate to contact me.

Sincerely yours,

MT Chinoda
CHIEF OPERATING OFFICER

Cc: Fille