via ZCTU predicts wages cuts – Southern Eye by Gamma Mudarikiri 15 January 2014
WITH the country showing little signs of a swift economic recovery in the next six months due to the prevailing harsh economic environment which has forced some firms to downsize in the new year, the Zimbabwe Congress of Trade Unions (ZCTU) has predicted a slash in workers’ wages.
ZCTU secretary-general Japhet Moyo said the continued decline of industrial performance pointed to a very gloomy year for the ordinary workers already battling to put food on the table after the bulk went home for the festive season with half or no salaries.
Most firms failed to pay their workers bonuses for the festive season.
Moyo, noting resolutions by the industry associations representing employers including the Confederation of Zimbabwe Industries (CZI) and the Employers’ Confederation of Zimbabwe (Emcoz) to introduce performance-based remunerations, a move which has been backed by the government, said collective bargaining for a wage increase would be a huge challenge this year.
Moyo said the situation has been worsened by the 2014 budget which the ZCTU described as anti-workers.
“The year 2014 would probably be a terrible year for workers. If you read statements from CZI, Emcoz it appears this year collective bargaining would be a challenge especially when they are coming after a budget statement which said labour laws must be adjusted to allow remuneration based on productivity. Workers cannot determine productivity, but the employer,” he said.
Moyo said with most companies struggling, productivity-based remuneration would be unfair for the workers.
COMMENTS
How is it possible for productivity based wages to be unfair?
Productivity based wages are the only way to go. The retrenchment laws are unaffordable companies cannot retrench so they have to spread a little bit of money across too many workers. Increases that are above and beyond capacity to pay produce a compounding negative return. If there is no money to pay wages in a normal productivity based economy there would be less workers but now the workers have to share a small pie. The pieces are getting smaller.
I say, “Fire the government!”
I would urge reporters or analysts to proffer informed reports. Are you aware that from a survey done by IPS Consultants, more than 70 percent of companies gave bonuses to their staff? Please spare us the stress caused by falsehoods.
How is it unfair to have productivity based wages? A business can only eat what it kills. If production is low and the company cant afford to have a huge wage bill, wages must be cut/people retrenched. Businesses struggle along and keep people on the payroll. Employees go for months without pay and the business is slapped with a hefty bill to pay from dwindeling funds. The Employer always loses at any arbitration. We need a pro-business government. A government that realises that the biggest employer shouldnt be them, but the private sector.