More than 1,400 workers laid off at RBZ

By Tererai Karimakwenda

The state run Herald newspaper reported Friday that the Reserve Bank of Zimbabwe (RBZ) had laid off three-quarters of its workforce, in a move to cut costs. The report comes on the last day of work for the 1,455 affected employees.

The Herald described the 75% staff layoff as ‘the single largest retrenchment undertaken in this country since independence’ and said it will cost the RBZ $70 million. The bank has just 493 workers left.

Under chairman Gideon Gono, the RBZ has catered to the whims of Robert Mugabe and ZANU PF, printing billions in Zim dollars without any substance to back it up. This devalued the local currency until it became literally worthless and was eventually abandoned in 2009.

Economist John Robertson explained to SW Radio Africa that the job losses became necessary after the local currency collapsed. The bank used to have the responsibility of printing and managing the currency and it also had the authority to impose regulations.

“A great many of the controls, regulations and legislation fell away and the people there no longer had any work to do. The bank has wanted to let them go, but the difficulty has been to find an exit package acceptable to the workers,” said Robertson.

Gono’s position at the bank remains one of the contentious, unresolved issues between the three principals in the fragile unity government. Mugabe re-appointed Gono without consultation, as required in the GPA, and has refused to remove him.

Robertson said: “It is very likely that Gono will keep his position because his appointment was a political decision. It is Robert Mugabe’s way of showing that he has authority and cannot be stopped.”

The Herald newspaper said each of the laid off workers will initially get $5 000, with more promised in the coming months. But as the civil service workers have experienced, government promises rarely translate into action when money is involved. Wage increases promised to the civil servants on several occasions, never materialized, and the possibility of a strike still looms.

Negotiations between government and the civil workers’ representatives collapsed on Wednesday without a solution. Finance minister Tendai Biti has insisted that there is no money for the huge salary increases being demanded. His last offer was a $26 increase in allowances and no wage increase.

Robertson agreed that the government has no money and said he does not think further negotiations will lead to any solution. “Most goods are being sold by informal traders so there is very little tax revenue. The government also has many outstanding debts and this makes them a poor credit risk globally,” said Robertson.

The economist also believes ZANU PF does not want any successes while the MDC is part of the government. He said economic recovery is not in ZANU PF’s interest, because they want their opposition to be blamed for the job losses and other failures as well. “It is politically inspired,” Robertson concluded. SW Radio Africa