Zimbabwe News and Internet Radio

Workers ‘demand to be paid in US dollars’

Workers in Zimbabwe are preparing to challenge the central bank to insist they get paid in US dollars.

File picture of construction workers on a break
File picture of construction workers on a break

The workers claim their salaries had been illegally converted into the Real Time Gross Settlement (RTGS) dollar by the central bank.

In February, the government introduced the RTGS dollar, which is being described by some as a new currency, after a lengthy history of currency problems.

The RTGS dollar is supposed to bring together bond notes, debit card and mobile money payments to make sure that they are all worth the same.

But the value of the RTGS dollar against the US dollar is set by the market. Workers argue that being paid in RTGS dollar has eroded the value of salaries.

The Zimbabwe Congress of Trade Unions (ZCTU) is preparing a legal suit against Zimbabwe’s central bank “for illegally imposing itself on our contracts of employment”, reports Newsday.

“The contracts that are in existence were signed as US$ contracts,” ZCTU President Peter Mutasa told the NewsDay newspaper.

The newspaper adds that President Emmerson Mnangagwa said on Friday that government was working on abandoning the multi-currency regime altogether and aims to introduce the country’s own currency before the end of the year. BBC News