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.”