The Financial Gazette

Shame Makoshori, Chief Business Reporter

THE spectre of workers at one of the country’s bread-making companies punching loaves of bread in the air and throwing baking pans onto the ground as temperatures boiled over between management and staff over the non-payment of salaries last week made some disturbing reading. Labour experts say the strike was a sign of the escalating tensions between workers and their employers, which could undermine efforts by the inclusive government to resuscitate Zimbabwe’s ailing economy.
Workers are pointing a finger at their bosses whom they accuse of not honouring a pledge they made last year to review salaries in line with improvements in industrial output or profitability.
They claimed to have exercised self-restraint at the formation of the inclusive government between the Movement for Democratic Change formations and ZANU-PF in February last year. But their patience, according to unions, is now wearing wafer thin because employers have remained indifferent to their cause.
At the time the inclusive government was formed, the Zimbabwe Congress of Trade Unions (ZCTU) – the umbrella trade union body — had pleaded with its affiliates to give the new administration time to work on measures to heal the country’s economy.
Then an estimated US$10 billion was required to stabilise the country’s tottering economy.
Capacity utilisation in industry was then at 10 percent. It has since improved to more than 40 percent in some industries with year-on-year inflation declining to 4,1 percent as of July 2010 from 500 million percent at the end of 2008.
Employers argue that they are still under pressure to balance between their weak balance sheets and meeting the demands of workers most of whom continue to walk to their workplaces in the hope that the situation would improve.
Statistics as seen in financial results for the half year ending June 30 2010 still show an economy suffering from high lending rates, lack of working capital, demands for higher salaries and the effects of cutthroat competition from imports.
Labour leaders said while companies were still going through enormous challenges workers have been and continue to be horrified by the fact that it is only the executive perks that are being adjusted in line with the improved capacity utilisation.
Salaries for the rest of the workers have generally remained at the same levels of about US$150 per month since February last year. And yet the cost of living has remained high.
“There is no element of honesty in our industries,” fumed Wellington Chibebe, the ZCTU secretary-general.
“Managers are not revealing the true state of affairs in companies; you cannot claim incapacity to pay salaries when managers are living large. How do you explain the fact that someone earns enough to feed the whole of Harare when others are still subsidising companies by walking to work,” he added.
“We were facing pressure not to disturb the inclusive government but we have realised that all governments behave the same and workers have begun to accept that there would be nothing for them without a fight. We have approached the Ministry of Finance to compel chief executive officers (CEOs) to disclose their salaries. Whenever there is ability (to pay) companies must pay,” the ZCTU chief said.
In May, at least 25 000 mineworkers went on strike, pressing for better pay after negotiations collapsed. They were demanding a US$290 minimum wage per month from US$140 which they are being paid.
Mines have remained steadfast that the US$290 was unsustainable given that economic revival is proceeding at a snail’s pace.
In 2008, most of the country’s mines were either placed under care and maintenance or closed due to hyperinflation, stringent export regulations and a skewed foreign exchange regime that existed at the time.
“It is very unfortunate that they (mineworkers) have decided to go on strike,” Chamber of Mines CEO Chris Hokonya said then.
“This has resulted in man hours lost, which will obviously affect the companies’ positions to pay them (workers),” he added.
A recent report by Zimbabwe Stock Exchange-listed gold producer, Falcon Gold, showed that the mining industry is still in the doldrums.
Falcon Gold said 2009 proved to be the most difficult year in the company’s history, adding that the challenges have continued into 2010.
Falcon suffered a US$3,5 million pre-tax loss in the year ending December 31 2009.
A month after the strike by the mineworkers, service delivery in the sprawling town of Chitungwiza temporarily grounded to a halt as disgruntled workers downed tools and bayed for the head of Town Clerk, Godfrey Tanyanyiwa after the dormitory town failed to settle salaries backdated to six months.
The Zimbabwe Banks and Allied Workers Union, which represents 5 000 workers has also joined the queue. The union gave a 14-day notice to strike to the Bank Employers Association of Zimbabwe two weeks ago after a deadlock over demands for an 80 percent salary increment.
Bank workers are demanding an increment backdated to April in an industry that has already lost 1 000 jobs because of the tough operating conditions prevailing in the country.
There has been depositor fatigue in Zimbabwe, apparently triggered by the low wages in industries that have forced individual depositors to focus on bread and butter issues instead of keeping money in banks where it is earning negative interest rates.
The high bank charges have also acted as a disincentive to potential depositors.
It is feared the strike by the bank workers, which could hit Zimbabwe next week if no agreement is reached, could further destabilise the country’s economy.
The industrial upheavals have been bubbling under for a very long time. It all started at the beginning of the year when civil servants downed tools to press for better salaries.
The decision to strike was reached after government said it could not meet workers’ demand for a minimum salary of at least US$502 per month, which is in tandem with the poverty datum line.
Chibhebe, the ZCTU secretary general, said the disturbances dogging industry and commerce were only the beginning of a bigger national strike.
Confederation of Zimbabwe Industries (CZI) president, Joseph Kanyekanye, said those awarding huge increments may not be taking into consideration a number of factors that affect their going concern statuses.
He also called for the amendment of the Labour Act, which he says currently favours employees.
In many of the cases where workers and companies have approached the courts for settlement after a deadlock, judgment has been in favour of the workers.
“We need laws that allow us to hire workers and be able to fire them  as quickly as we want,” Kanyekanye told reporters at a recent press conference.
“The Labour Act must be amended with CZI’s input...we agree on one (salary as an industry) figure...we get an arbitrator with absolutely no idea of the industry and put one plus one to come up with a salary,” complained Kanyekanye.

Comments (5)

Show/Hide comments

Show/Hide comment form

Name

Comment

smaller | bigger

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment