Employers must give workers a living wage

The Chronicle
1 May 2009
By Kennedy Mavhumashava

For the first time in about four years, Mr Farai Musengi (34) a diesel plant fitter at a Bulawayo firm got what he regards as a salary on Friday last week.

“Before that I would say I was doing national service,” said Mr Musengi.

“It was a struggle and like everyone else, I really do not know how I managed to pull through, especially last year. The salary I got on Friday is still low, compared with what one of my former workmates is earning in Mozambique, but at least you can buy some bread everyday and have a drink with friends over a weekend.”

Mr Musengi said life had become miserable for him and most workers, especially last year, when the economic crisis intensified, with inflation running into billions, against stagnant salaries.

His friend, Mr Charles Kasirayi (30), a boilermaker said: “No matter how your employer raised your salary, matching inflation was impossible unless the salary was paid out in foreign currency. So for us skilled guys, you had to do something on the side to get more income. Otherwise you would not survive.”

Both Messers Musengi and Kasirayi said as Zimbabwe marks Workers’ Day today, it is crucial for employers to reward employees like him who soldiered on through the years, when taking up official employment had become not only unfashionable but also untenable.

Thousands of workers across the country will converge on stadia in Harare, Bulawayo and other towns to mark Workers’ Day.

A few weeks ago, the Zimbabwe Federation of Trade Unions (ZFTU) proposed joint celebrations with the Zimbabwe Congress of Trade Unions (ZCTU) in the spirit of inclusivity, following the establishment of the inclusive Government by the country’s three main political parties in February.

However, the latter rejected the overture, meaning that both organisations would stage separate Workers’ Day celebrations.

The ZFTU will hold its celebrations at the City Sports Centre in Harare, while the ZCTU will hold its commemorations at Gwanzura Stadium in Highfield in the capital.

Prime Minister Morgan Tsvangirai is expected to be the guest of honour at the Gwanzura celebration, which is the ZCTU’s main commemoration. The Minister of Labour and Social Services, Paurina Gwanyanya will also address the gathering at Gwanzura Stadium.

ZCTU will mark Workers’ Day under the theme “It May be Dawn, Workers’ Intensify the Struggle.”
The theme seeks to capture the renewed hope that has been ignited by the formation of the power-sharing Government.

The political tensions that marked relations between political parties have markedly eased, while the economy is showing signs of improvement after the Government’s dollarisation policy, announced in January, shortly before the new administration took office.

Prices of various products and services have not only stabilised, but also fallen, giving workers some respite.

But the first signs of economic recovery started to show around October last year, when the Government allowed selected businesses to sell their products and services in foreign exchange. Goods started resurfacing on shelves, at more stable prices, but the challenge was that only a few workers were earning salaries in foreign currency, except a few whose employers had to secure special approval from the Reserve Bank.

When the then acting Minister of Finance, Senator Patrick Chinamasa, announced the major policy turn of dollarising the entire economy the improvements were further enhanced.

But while a section of the local workforce is seeing humble improvements in their lives, civil servants, who constitute the majority of formal employees in the country are still struggling.

In January, the Government started paying them US$100 in allowances each, but they are demanding more.

Teachers, for instance, have threatened to go on strike again this year if the Government fails to improve their salaries.

However, the Minister of Education, Sport, Arts and Culture, Senator David Coltart, this week announced that the Government was working on an improved package for teachers, a development that could influence the educators to give dialogue another chance before withdrawing their labour.
Although there have been some gains in Zimbabwe regarding the welfare of workers, the global labour body, the International Labour Organisation (ILO) said in a report issued last October income disparities between poorer and richer households had grown across the world.

The report said despite strong economic growth that produced millions of new jobs since the early 1990s, income inequality has grown dramatically in most regions of the world. It is feared that the inequality will further increase due to the current global financial crisis.

The report, entitled World of Work Report 2008: Income inequalities in the age of financial globalisation, notes that a major share of the cost of the financial and economic crisis will be borne by hundreds of millions of people who have not shared in the benefits of recent growth.

“This report shows conclusively that the gap between richer and poorer households widened since the 1990s,” said Mr Raymond Torres, lead author of the report.

“This reflects the impact of financial globalisation and a weaker ability of domestic policies to enhance the income position of the middle class and low-income groups. The present global financial crisis is bound to make matters worse unless long-term structural reforms are adopted.”

The ILO report further notes that as global employment rose by 30 percent between the early 1990s and 2007, the income gap between richer and poorer households widened significantly at the same time.

The obtaining global economic slowdown is affecting low-income groups disproportionately.
ZCTU president Mr Lovemore Matombo said Workers’ Day is a big day for employees in the country and elsewhere around the globe, as it gives them the platform to collectively assess their effort, in relation to the rewards they get in salaries and working conditions.

He said the general standard of living of most workers in the country has improved, compared to the situation obtaining in previous years, particularly last year. He however pointed out that salaries were still way below the poverty datum line, quoted at US$454 per month.

He castigated the business sector, which he said continues to charge unrealistic prices for some products and services, especially furniture items and clothing, among others. This, he said tends to negate any salary increases workers get.

“The standard of life of workers has improved dramatically,” he said.

“That relates to the retail sector where most basic commodities are available unlike last year when you could not find salt, sugar or any basic commodity you need. Furthermore, it was very difficult last year, for workers to access their wages from banks. Even if they did access their money, it was not enough to buy anything. As ZCTU, we note that although the US$100 paid to most workers is still little, at least US$20 can buy a few of their household requirements.”