Zimbabwe reviewing executive packages, cap unlikely to hold

via Govt reviewing executive packages, cap unlikely to hold | The Source April 23, 2014

Government is reviewing its move to cap public sector pay and working on a new salary structure, industry and commerce minister Mike Bimha said on Wednesday, amid skills flight fears and resistance by top executives.

Last month, the cabinet announced it had temporarily capped salaries and allowances for state enterprise executives and municipal managers at a maximum $6,000 per month after public outrage at revelations that some officials were earning over $500,000 per month in an economy where government workers are paid an average of $300.

On Monday, President Robert Mugabe said his monthly salary was pegged at $4,000 ‘because of hard times.’

However, a frustrated government has admitted that the enforced austerity had faced resistance from executives, and warned it could come up with legal instruments to give effect to the salary cap.

Addressing a business conference on the sidelines of the ongoing Zimbabwe International Trade Fair (ZITF), Bimha acknowledged that government faced an uphill task enforcing the pay cap and was working on a new salary structure for the public sector.

“By capping salaries you are demotivating the people who do the work. But this was not done to demotivate,” Bimha said, adding that a new salary structure would be benchmarked on competence and regional standards.

“(The capping) was done as a result of a crisis in some state entities; therefore government had to act swiftly. There is work that is now underway to objectively grade jobs and derive internal as well as external equity. In that regard, government will come up with a salary structure based on skills and qualifications. But before that, there had to be a cleanup exercise.”

 

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14 comments on “Zimbabwe reviewing executive packages, cap unlikely to hold
  1. Jono Austin says:

    ‘faced resistance from executives’-who the hell do they think they are. Fire them then. They are mere actors anyway. Crush them!!

    • Tjingababili says:

      WHAT SKILL FLIGHT! THEIR OPTIONS ARE VERY LIMITED! WHO CAN EMPLOY NONPERFORMING AND REWARD THEM WITH OBSCENE SALARIES! SOMEONE FEARS LOSING KICKBACKS, HERE!

  2. DW says:

    When you have been living high on the hog then $72k pa is paltry. However in present day Zim it should be a good salary, so let them thieves resign, good riddance. We might then see one…even just one state institution start to perform adequately!

  3. John Thomas says:

    The government does not employ any talent worth more than 6k. Most government managers need replacement having already proven themselves failures. 6k is enough in today’s economy to attract good people.

  4. Panda moyo says:

    They never intended to do anything about these people,it was just talk to keep our attention from other issues.i have said it b4,heads of parastatal are appointed by someone.so the appointerdoes not want to”upset” his blue eyd boys who keep him in that chair.one cannot punish oneself.these people pay in different ways to the appointer so lets forget about anyone getting punished.

  5. Matome says:

    This is very surprising. The real workers are not getting what they are working for. Cashberts are taking everything from the poor. Be warned, the tears of the poor is a curse on you.

  6. roving ambassador. says:

    The gravy train is gaining momentum again. But for how long?. Where will the money come from??. Zanu is crushing under its on weight of corruption.
    Their are scared of brain drain, my gosh, the Clever chaps left long ago ,in the 90′s.
    Whats left is chaff ,both in Zanu and government ,thats why the economy is in such disarray.
    You can see the chaos this Mike Bimha, Chinamasa are creating. The whole Zanu coterie is totally clueless on what to do. They are all shooting in the dark, hoping to get something and they don’t even know what.
    Circus.

  7. Little Dorrit says:

    What skills will take flight? Suggest they all fly to Malaysia via the southern Indian Ocean

  8. doko says:

    people employed by state owned enterprises are also covered by the labour act. The law of contracts also applies to them. The move to curb their legally negotiated salaries is illegal. I do not want to believe that there is no rule of law in Zimbabwe.

  9. Saddened says:

    Let them leave if they want to as no decent organisation will even give them a second look. These sort of organisations do reference checks so let them leave & see how the real world works. Advertise the vacant posts @ $6000 and I wouldn’t be surprised if a huge response isn’t received. Bottom line is that people like Bimha just cannot be trusted. This is more than likely a scheme to hoodwink the public once again. Just a brood of vipers!

  10. peters says:

    Is the ZPF gvt incompetent or they are just running down the country to punish the Zimbabwean people for voting them into power because with this suffering you go to certain places and still the people will vote for Zpf even today despite their suffering at the hands of Zanu pf I think to a certain degree the Zimbabwean people deserve the suffering they are going through because it is self inflicted to some extent

  11. kalulu says:

    I fail to understand what Bimha refers to as hard working CEO’S when on the ground there is no service delivery’ how is their hard working or competence measured where is the improvement when tax payers do not see anything positive in terms of service delivery. To make matters worse when lower ranks get very little pay or no pay for several months. If they want to leave let them do so but the truth is genuine organisation will hire such thieves.

  12. Little Dorrit says:

    Been suggested that entire civil service / parastatal / govt controlled companies and authorities should be terminated and re-engaged on short-term performance related contracts. PSMAS ZIMRA etc budgets subject to Min Finance – what happened Mr Biti? Check payroll systems -if “two payrolls” = fraud. Bimha is using the law – the law may also show that authority for these obscene salaries was never DULY obtained

  13. Folded Arms says:

    Simply a ploy to allow the looting and kickbacks schemes to continue as usual after the noise about corruption scandals has died out. Everyone knows there are no professionals in those top posts just incompetents hide on a who do you know basis. Skills flight my …… Folded Arms is amazed.

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