Private Sector Cannot Match Government's Salary Increment - ZCTU
Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Japhet Moyo has said the majority of employers in the private sector cannot afford to match the recent salary adjustments set by the Government.
The Government recently approved a 100% salary increment for civil servants, with COVID-19 allowances also increased from US$200 to $250 across sectors excluding the health sector.
Moyo said in the past the private sector had been using Government salaries as a yardstick but this time, very few can afford to do that. The Sunday News quoted Moyo as saying:
There were different reactions to the Government’s position. Some sectors sort of followed what the Government offered its workers and some are offering a bit lower and we have not heard of anyone that is offering above that yet.
It is not always that they follow what the Government prescribes to its own employees but that has been the trend for a long time.
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There are employers who believe that it is unaffordable as they source foreign currency from the black market.
Not all employers get their money from the auction system so they are worried that they may not be able to match what the Government has given for its workers from where prices are usually pegged. That’s the sentiment I am getting.
Collective bargaining has been very difficult, there are many backlogs that are there in all sectors so it looks like many of these sectors will not be able to do what the Government has done for its workers this time around.
However, economist Morris Mpala, said despite the 100 percent increase in salaries for civil servants, public workers still earn less than workers in the private sector. He said:
The 100 percent salary increase is good, yes but still civil servants rank low as compared to the private sector.
It is of course in the right direction that they were awarded this increase but it does not really motivate the private sector to do much as they still remain high in terms of salary rankings.
Most of the time, civil servants rarely enjoy a salary increment because as soon as an announcement is made, shops and service providers hike prices and the exchange rate also shifts on the parallel market.
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