Public sector executives resist pay cut, Zimbabwe mulls enforcing law

via Public sector executives resist pay cut, govt mulls enforcing law | The Source  April 10, 2014

Government will enact a law capping salaries and allowances for managers in state-owned companies and municipalities after facing resistance to the temporary measures reining in executive perks, a minister said on Thursday.

Last month, the cabinet capped salaries and allowances at a maximum $6,000 per month after public outrage at revelations that some managers were earning over $500,000 per month in an economy where government workers are paid an average of $300. But information and media minister Jonathan Moyo said some executives were disregarding the directive.

“The response so far by the affected community of these officials has been negative and even contemptuous because there are no legal consequences for deviating from the framework. It is therefore necessary that we go a step further and legislate this framework so that there are clear legal parameters and penalties in the event of non-compliance,” Moyo told The Source in an interview.

“This will be done as soon as possible. This is a matter that is before the cabinet committee of state enterprises and parastatals development. The matter is therefore live since the committee that is chaired by the minister of finance is seized is with it. It is something that we need to do to inspire confidence in the public and also to send a clear message to state enterprises, parastatals and local authorities that this is not a joke.”

Asked whether the proposed new law could be challenged under the current labour regulations, Moyo said: “There is need, given where the economy is and also in reference to ZimAsset, to revisit the labour laws to make them flexible in some very important aspects that are necessary to create the momentum for the turnaround of the economy.”

 

COMMENTS

WORDPRESS: 5
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    ZimJim 7 years ago

    “This will be done as soon as possible.” = “This will not be done.”

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    The non-existence or non-observance of good corporate governance is plain to see. Every organisation should have laid down structures that detail job descriptions and commensurate pay scales. It seems these guys just pick a figure and run with it. Then, without conscience, fail to pay others and fail to deliver on what the organisation was established to provide, either goods or services.
    It’s just plain greed. It is bewildering how unpatriotic these people are.

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    Saddened 7 years ago

    As we are blue in the face saying, please check if they paid income tax on these huge salaries & if not that is sufficient grounds to prosecute these ‘thieves’. Wasn’t Pasi complaining of insufficient inflows just recently? While government is dithering three months down the road following the initial revelations, they have emboldened these people to take a stand.

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    These mega earners make the colonialists look like saints. Their greed totally discredits our present leadership. The only good to come out of this fiasco is we now know that we desperately need new leaders. The zanu culture cares nothing for the lowly worker. So much for their socialist roots.