200% cost of living allowance for Tongaat employees

By Walter Mswazie

The country’s sugar giant, Tongaat Hulett Zimbabwe (THZ), has awarded its employees close to 200 percent cost of living adjustment allowance to cushion them from the prevailing economic hardships.

In an internal correspondence seen by Business Chronicle, the company’s acting chief executive Mr Aiden Mhere said the workers had been awarded the cost of living adjustment allowance with effect from August 1, 2019.

“In order to further cushion employees from the impact of the ongoing economic challenges, I am pleased to announce that the company has increased the non pensionable cost of living allowance granted in June 2019 to all current employees with effect from August 1, 2019.

“The new allowances are being granted at the company’s sole discretion on, a without prejudice, basis,” he said.

Mr Mhere also indicated that employees in grade A and B will be awarded a cushion allowance of 196 percent while those in grade C and D will get a 191 percent allowance.

“Those in D3 and above grades will get 175 percent cost of living allowance.”

Mr Mhere who is also the general manager of the company said the basic salaries for both A and B graded employees would not be changed and the allowances will be paid as per the company’s discretion on a, without prejudice basis.

“Allowances will not become part of the regular basic pay.

“The allowances will be paid with effect from August 1, 2019.

“The allowances will be included in the August 2019 pay packages and will be taxable in accordance with existing tax legislation.

“The allowance will not apply for the purposes of calculating pensions,” he said.

Workers representatives, Zimbabwe Sugar and Milling Industry Workers’ Union secretary general Retired Captain Faster Gono hailed the gesture by the employer but said they had a pending petition which needed a response.

“We are happy with the move taken by the employer, THZ to cushion the employees who are doing a great job.

“However, we recently petitioned the management for salary adjustments given the prevailing economic hardships.

“We got the assurance that the management will look into our grievances and we are hopeful that they will live up to our expectations,” he said. The Chronicle