Government, labour in US$ salaries impasse

Government has reiterated its commitment to meeting Civil servants’ salary and wage demands in a manner that takes into account the prevailing macro-economic environment, a senior government official has said.

Meanwhile, the two parties are currently in a stand-off regarding the paying of salaries in US dollars, with government saying it is not sustainable as of now, but, labour is alleging that the employer is just not willing to do so.

This was disclosed by Public Service, Labour and Social Welfare Minister, Professor Paul Mavima who is also the Tripartite Negotiating Forum Chairperson after attending the second TNF meeting in Harare this Wednesday.

Principals to the Tripartite Negotiating Forum comprising Government represented by Cabinet Ministers, Captains of Industry and Labour Organizations gathered in Harare to get feedback on the milestones after their first meeting.

Briefing the media after the marathon meeting, TNF Chairperson, Professor Paul Mavima said the talks were inconclusive with the contentious issue of paying salaries in US dollars dominating the meeting.

“We need to be cognisant of our gains on the macro-economic front because increasing salaries may be instrumental in causing inflation,” he said.

However, Labour is of the contrary view.

“As Labour, we know that the Government can easily revert to US dollar salaries but it is not only willing to do so.”

Representing business was Zimbabwe National Chamber of Commerce President, Dr Tinashe Manzungu who said the issue of paying salaries in US dollars across all sectors should not be fast-tracked as it may be counter-productive.

“Some companies can go under if they pay salaries in US dollars, however, other companies, especially in the mining sector, have already started doing so.”

Minister Mavima thanked all the partners for their commitment to the TNF with Government confirming its obligation to the social pact after the meeting was attended by several cabinet ministers including Finance and Economic Development Minister, Professor Mthuli Ncube as well as Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa. -ZBC/ Zwnews