The Secretary General of the Zimbabwe Congress of Trade Unions (ZCTU) Wellington Chibhebhe has denied government claims that the rise in inflation is being fuelled by general wages and instead blamed government extravagance and the existence of ghost workers in the civil service for the problem.
Minister of Finance Tendai Biti recently said the country had an ‘unsustainably high civil service wage bill. The ZCTU however believes ‘the issue of the high civil service wage bill is as a result of ghost workers whom government admitted exist. If one Ministry has more than 10 000 ghost workers, what of all the ministries, the union asked in a statement.
‘Salaries of workers both in the public and private sectors have not increased since 2009. In some sectors workers recorded an increase of a paltry $2 that in no way can cause inflation. The private sector takes a cue from government – the fact that there has been no salary increase for government workers means even in the private sector there are no increments. Even if increments are awarded, employers have been appealing against the awards,’ Chibhebhe said.
It said the only people earning ‘real wages’ are company executives with some earning more than US$10 000 coupled with unlimited perks, while the least paid worker takes home a paltry US$30. If at all government was to make noise about wages, their first port of call should be the executives’ salaries and perks. The ZCTU said.
‘The International Monetary Fund (IMF) has also joined in the fray and is indicating that the civil service is bloated. This is the same IMF that once caused untold suffering to workers as a result of its prescriptions that saw thousands retrenched in the 1990s.’
‘Currently only 10 percent of Zimbabweans are formally employed and presumably this 10 percent is the one fuelling inflation. The IMF and World Bank policies have failed not only in Zimbabwe but in other countries as well and government should be wary of these institutions’ remedies.’
‘What is actually true is that prices have been increasing steadily while wages have remained stagnant. The only months that recorded low prices due to competition were the months of April and May where some leading retailers had in-house promotions forcing other players to reduce their prices.’
‘Water and electricity are highly overpriced also given the fact that these services are rarely available. According to a Consumer Council of Zimbabwe report, electricity and rentals recorded an 8 percent increase last year and also accounted for 60 percent of the Poverty Datum Line.’
‘The ZCTU is of the strong conviction that government expenditure has been the major driver of inflation. Government has been spending what it does not have. The latest example is a new fleet of cars that have been bought for the police. The cars include BMW’s, Mercedes Benz, Toyota Vigo’s and Isuzus.’
‘These are expensive cars yet the trend the world over is for police to use vehicles that are suitable for their operations and not to use such expensive cars. So far this year reports point that government has gobbled more than $6 million in travel.’
‘Government seems to be blind to the fact that an increase in wages has ripple effects – it will mean workers have more disposable income and are able to spend more, resulting in a demand for goods and services thereby increasing production leading to a growth in the economy. If people earned enough, they would be buying locally produced products thus promoting local industries and protecting jobs. So the more workers earn the better for the country.’
Chibhebhe said workers will continue to demand wages that are commensurate with the reality on the ground.
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