Zimbabwe: Labour Petitions Public Service Minister Over RBZ's Poverty Inducing Policies - Calls for Dollarisation

17 October 2024

THE country's two labour federations, Zimbabwe Congress of Trade Unions (ZCTU) and Zimbabwe Federation of Trade Unions (ZFTU) have petitioned Public Service Minister July Moyo over deepening poverty affecting the country's citizens prompted by monetary and fiscal policies.

In a letter dated October 15 2024 jointly signed by the ZCTU acting secretary general, Kudakwashe Munengiwa and the ZFTU secretary general, Kennias Shamuyarira told Moyo to be considerate of the hardships being faced by the country's working class.

The duo said they were particularly "unhappy, deeply concerned and disappointed" with the state of the country's economy and in particular, the deteriorating and unstable macro-economic environment that continues to negatively impact the worker in their quest for decent salaries.

They said the collapse of the economy and currency changes since 2008 have been devastating on workers in terms of eroding wages and salaries has rendered most occupational pension schemes and social security schemes unviable, irrelevant, meaningless and unsustainable.

"We are also worried by the continued lack of consultation on serious policy issues particularly by the Reserve Bank and Ministry of Finance. The RBZ Monetary policy measures have had a devastating effect on workers' income as well as prices.

"The latest being the 43% devaluation of the ZWG that has left workers clutching in the air without room to breathe as half of their earnings have vanished. This has been made worse by the fact that most shops have been charging double prices on ZWG transactions," reads the letter.

The federations quizzed why Moyo was taking his sweet time and not expeditiously pushing for negotiation to get the economy dollarized urgently as well as gazetting a minimum wage pegged in US$.

They pleaded with Moyo to appreciate the extent to which workers and citizens have suffered immensely as wages have failed to keep pace with the inflationary trends and currency shocks which have seen the situation worsening and rendering it practically impossible for workers across all sectors to earn and sustain their families or be able to go to work.

"It is in this vein, that as organised labour we are calling for gazetting of the National Minimum Wage to protect the lowest paid worker; that employers be directed to pay 80% of wages in US$.

"You as Chairperson of the TNF call for the urgent convening of the Tripartite Negotiating Forum (TNF) whose agenda would be to discuss the currency crisis, macro-economic situation and the erosion of workers' salaries. We hope and trust that this is in order and await your immediate response," the letter added.

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