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Zimbabwe: Workers Grossly Underpaid - CZI
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 Published by the government of Zimbabwe |
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The Herald (Harare)
25 July 2008
Posted to the web 25 July 2008
Harare
The Confederation of Zimbabwe Industries has admitted that Zimbabwean workers were grossly underpaid, earning an equivalent of US$8-US$10 per month in 2007.
In its Manufacturing Sector Survey for the year 2007 availed on Wednesday, the industrial representative body admitted that the country's workforce was highly demoralised, leading many to opt for informal employment.
The CZI said the difficult operating environment had also resulted in a decline in employment levels.
"We can contend that though difficult to quantify, a demoralised workforce earning less than a living wage is not motivated enough to work and thus is contributing to lower capacity utilisation," it said.
With inflation of over 2 million percent, there was pressure for industry to remunerate workers in hard currency.
In the survey of 100 companies, most employers highlighted increasing requests by staff for loans to finance school fees, transport and other basic needs.
CZI president Mr Callisto Jokonya noted that underpayment of the workforce continued to contribute to skills drain.
"Using alternative market rates, some workers are currently taking home less than US$2 per month while we are operating in a region were some countries are paying more and so we continue to lose staff," he said.
Mr Kenias Mafukidze, the founding chairman of KM Financial Services, which undertook the survey, said it was time companies cared more for their workforce.
He said there was need for companies to balance their turnover and employment costs.
Mafukidze noted that in most cases company turnovers were shooting up while employment expenses continued to go down.
Meanwhile, employment levels in the manufacturing sector declined by 12,2 percent last year compared to the same period the previous year.
The manufacturing sector survey for 2007 said the reasons for the drop in employment levels, included less work, less people, low capacity utilisation while positions are not being refilled.
The survey also revealed that there was reduced capacity and idle time as well as voluntary retrenchments as people earning less than a living wage opt out of the formal system and high operational costs.
Major constraints to employment included foreign currency at 133 percent up from 18 percent last year, raw material shortage at 26,7 percent down from 55 percent and low production at 20 percent down from 64 percent.
In addition the unavailability of funds in FCA accounts was crippling operations of most companies while at the same time the liberalisation of the exchange rate has been seen by most companies as a step in the right direction.
The survey noted that there was a change in total wage bill of 45,469 percent, which was way above the official average inflation for the year of 6, 723 percent.
On average, the survey said it was discovered that most employees are currently earning an equivalent of US$8 to US$10 per month using the prevailing interbank exchange rates.
The survey said most companies were under pressure to remunerate their workers in hard currency on the back of ballooning inflationary pressure.
It was also discovered that food shortages and food inflation was becoming worse, such that more people were absconding from work because of the high costs of living.
Transport costs, which have gone beyond most monthly salaries, were also cited as another reason for absenteeism.
"Consequently more companies are working staggered weeks due to idle time in a bid to save costs as a lot of the employees are simply coming to work to use free facilities to do personal business.
The issue of the demolisation of the workforce has been partly blamed for the low capacity utilisation.
"We contend that though difficult to quantify, a demoralised work force earning less than a living wage is not motivated enough to work, thus is contributing to lower capacity utilisations.
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"In fact, a workforce in this state, imposes costs of pilferage and over-use of telephones to structure personal deals," read part of the report. -- Business Reporter/New Ziana.
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