OK Zimbabwe Suspends All Worker Salaries, Union Calls Move "Illegal"
Retail giant OK Zimbabwe has told its workforce to keep showing up, but stop expecting a paycheck. A resolution signed on May 22, 2026 by the company's Joint Works Council suspended all salaries and wages indefinitely, effective immediately. The Commercial Workers Union of Zimbabwe (CWUZ) says nobody asked them.
The resolution, signed by Works Council Chairman Alex E. Siyavora, National Workers Committee representatives, and Corporate Rescue Practitioner Bulisa Mbano of Grant Thornton, states the company "will not be running any payroll beginning the month of May 2026 until further notice and in any case until such time that business and revenue return to profitable levels" (Pindula).
In plain terms: workers must keep commuting, keep stocking shelves, and keep serving customers, but they will not be paid for it.
A Collapse in Numbers
The scale of OK Zimbabwe's financial distress is severe. In the 11 months leading to February 2026, revenue plunged from US$245 million to US$40 million, an 84% decline. Units sold dropped from 208 million to 32 million over the same period (Pindula).
The company's balance sheet tells a similar story: current liabilities stand at US$38.7 million against only US$12.8 million in current assets (Pindula).
Looking further back, the FY2025 annual report shows revenue halved from US$511 million to US$245 million, while EBITDA swung from a positive US$40 million to a loss of US$5 million. Staff numbers fell from 4,116 to 3,311, and the customer base shrank from 34 million to 22 million (Business Daily). Fifteen underperforming stores have already closed, leaving 54 outlets still trading (Pindula).
The board placed the company under corporate rescue on February 24, 2026, invoking Section 122 of the Insolvency Act to shield it from creditor litigation while Mbano attempts a restructuring (TechnoMag).
The Union Pushes Back
CWUZ Secretary General Cuthbert Chikwekwete did not mince words. He called the payroll suspension "exploitative and illegal" and argued it directly violates the Labour Act [Chapter 28:01], which requires collective bargaining agreements to go through wide consultations, a voting process with 50% worker approval, and consent from representative trade unions (New Zimbabwe).
"We were never consulted as the largest workers' representative body in the sector," Chikwekwete said. He also challenged the legitimacy of National Workers Committee chairman Givemore Dondo, one of the signatories, claiming Dondo's term of office had already expired. "Even if he was still in office, his signature alone, outside due process, can never subject workers to this slave-like arrangement" (New Zimbabwe).
The union further criticised the corporate rescue practitioner for not producing a formal rescue plan, which it says must be approved by affected parties before such measures can be taken.
Chikwekwete pointed out that workers still face daily costs, from transport to pension contributions. "Workers are still commuting to work and have expenses to meet. How will that be possible without pay?" he asked (New Zimbabwe).
What Happens Next
CWUZ has demanded an immediate reversal of the payroll suspension and threatened legal action if the company does not comply. The union says it will pursue the matter through the courts if necessary.
For the more than 3,000 workers still on OK Zimbabwe's books, the immediate future is uncertain. The company's resolution describes the salary freeze as "a difficult and uncomfortable measure but a necessary intervention" (iHarare). For workers who must still pay rent, buy food, and cover school fees, that framing offers little comfort.
Anyone shopping at the remaining OK or Bon Marché outlets this week might notice the staff looking less motivated than usual. That is not a coincidence. The legal challenge will test whether corporate rescue proceedings can override basic labour protections, and whether workers can be asked to keep working indefinitely without pay.
For the latest ZiG and USD exchange rates, visit ZimRate or use the currency converter to check current rates.
This article is for informational purposes only and does not constitute financial advice.
