THE Zimbabwe Congress Trade Union (ZCTU) secretary-general Japhet Moyo has encouraged national employment councils (NECs) to come up with wage minimums in line with the cost of living.
This follows increasing complaints from workers that wages are not being raised in line with the cost of living, after the country’s former currency, the Zimdollar (ZWL$), lost over 700% of its value last year, which prompted workers to demand to be paid in line with inflation, pegged against the greenback.
The NEC for the Commercial Sectors of Zimbabwe has since thus raised wages so that the lowest-paid employee takes home US$295 or its Zimbabwe Gold (ZiG) equivalent, from US$253.
“We encourage parties to make sure they agree on a living wage or wages and salaries above the PDL (poverty datum line),” Moyo said, in an interview with NewsDay Business.
At US$295, the cost of living for one person translates to nearly ZiG4 000 using the official forex rate.
Last week, the Zimbabwe National Statistics Agency reported the Total Consumption Poverty Line for one person was ZiG650,26 in April 2024.
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For food, the costs for one person was recorded at ZiG424,95 based on a low calorie diet.
However, most of the economy uses the much higher forex rates prevalent on the parallel market.
“This is a collective bargaining agreement for the commercial industry. This was entered or agreed by the registered employer organisation and registered trade union in the commercial sector,” Moyo said.
“NECs enjoy delegated powers, therefore, it is within their powers to determine minimum conditions of employment and wages within their sector. The parties to the NECs are answerable to their members who mandate them regularly to negotiate or review wages and salaries.”
He accused NECs of failing to represent workers fully and that workers felt betrayed.
“Over the years very few parties at the various NECs have managed to agree on wages and salaries above the PDL,” Moyo said.
Meanwhile, the Public Service Labour and Social Welfare ministry has cancelled the registration certificate of the NEC for food and allied industry for failing to submit audited financial statements for the year 2023 to date.
The move, according to analysts, will have a domino effect on NECs that have not complied with the Labour Amendment section 56 as well.
“It is hereby notified that I as the Acting Registrar of Labour, has in terms of section 59 (4) as read with section 63A of the Labour Act [Chapter 28:01] cancelled the registration certificate of National Employment Council for the food and allied industry with immediate effect,” the ministry said, in a letter dated April 22, 2024.
“For avoidance of doubt section 59 (4) provides as follows: An employment council shall submit an audited account of its revenue and expenditure to the Registrar within the period specified in section 63; and; submit at the written request of the Registrar, no later than seven days after receiving the request, or after such longer period as the Registrant may for good cause allow, such written report on any matter as the Registrar may reasonably require in connection with its operations.”
The letter indicated that any failure on the part of the employment council to comply with those requirements constitutes justifiable grounds for the registrar to cancel a certificate.
“National Employment Council for food and allied industries has not submitted audited financial statements for the year 2023 to date as such I have cancelled your registration certificate with immediate effect. Please be advised accordingly,” the letter added.