Explainer: Concerns raised over Sino-Hydro’s labour practices in Zimbabwe

Recent investigations have unveiled serious allegations against Sino-Hydro, a state-owned construction company in Zimbabwe, regarding its treatment of local employees, which purportedly contravenes the Labour Act and the Zimbabwean Constitution.

A Billion-Dollar Contract with Controversial Practices

In 2014, Sino-Hydro was awarded a US$1.1 billion contract by the Zimbabwe Power Company (ZPC) for the expansion of the Hwange Thermal Power Station, aimed at enhancing the national power grid by adding 600 megawatts. Despite the project’s completion in August 2023 and ongoing operational responsibilities extending over five years, there are growing concerns regarding the company’s disciplinary practices.

Unlawful Salary Deductions: A Breach of Employee Rights

Evidence gathered by NewsHub through primary documents, interviews, and online monitoring has indicated that Sino-Hydro frequently imposes arbitrary financial deductions from employees’ salaries without adhering to legally mandated disciplinary procedures. This practice raises significant legal and ethical issues as it undermines employees’ rights to fair treatment and just working conditions as enshrined in Sections 68 and 65 of the Zimbabwean Constitution, as well as various provisions outlined in the Labour Act (Amendment) of 2019.

Performance Evaluation or Exploitation? Sino-Hydro’s Questionable Tactics

Sino-Hydro’s approach, which reportedly involves unilaterally deducting amounts from employee salaries for alleged misconduct—ranging from minor infractions to unfounded claims—has come under scrutiny.

Workers’ Struggle for Justice Amid Hostile Conditions

The company’s peculiar performance evaluation system, derived from Chinese civil service practices, appears to facilitate these deductions without proper representation or the opportunity for employees to contest the punishments. For instance, a truck driver and his supervisor reportedly had US$500 deducted from their salaries for refueling a company vehicle outside the designated area, while other employees faced fines for perceived negligence or low responsibility.

Legal Experts Condemn Sino-Hydro’s Practices

Multiple reports suggest that the notifications of these financial penalties often contain vague allegations devoid of objective evidence, ultimately contributing to a hostile work environment. Following the establishment of a workers’ committee to address concerns regarding these violations, employees have sought the intervention of the Zimbabwe Electricity Supply Authority (ZESA) and legal counsel, but Sino-Hydro’s punitive practices continue unabated. Legal experts have affirmed the illegality of the deductions, insisting that such measures constitute a grave infringement of workers’ rights.

The pertinent authorities, notably ZESA, have a duty to take the accusations seriously in light of these developments and to conduct thorough investigations into Sino-Hydro’s labour practices.

Call for Action: Will Authorities Intervene?

The necessary reforms must be implemented to uphold employee rights and ensure compliance with established legal standards. Failure to do so jeopardises the integrity of the labour framework in Zimbabwe and could embolden other corporations to engage in similar exploitative practices, undermining the fundamental principles of fair labour standards and employee protection.