Government sets salary bar too high: Private Sector

Robin Muchetu, Senior Reporter

THE recent salary increase awarded to civil servants has left the usually vocal private sector tongue-tied as Government has once again taken its pacesetter position in terms of workers welfare with employee representative bodies saying the bar has been set too high.

Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Mr Japhet Moyo said although the private sector had been using Government salaries as a yardstick, very few could afford to match the recent salary adjustments set by the Government.

“There were different reactions to the Government’s position. Some sectors sort of followed what the Government offered its workers and some are offering a bit lower and we have not heard of anyone that is offering above that yet. It is not always that they follow what the Government prescribes to its own employees but that has been the trend for a long time,” said Mr Moyo.

Mr Moyo said private sector salaries were dependent on whether the businesses were doing well.

“There are employers who believe that it is unaffordable as they source foreign currency from the black market. Not all employers get their money from the auction system so they are worried that they may not be able to match what the Government has given for its workers from where prices are usually pegged. That’s the sentiment I am getting,” he said.

Mr Moyo hastened to point out that collective bargaining in the private sector had been difficult.

“Collective bargaining has been very difficult, there are many backlogs that are there in all sectors so it looks like many of these sectors will not be able to do what the Government has done for its workers this time around,” he said.

Economic analyst Mr Reginald Shoko said the Government had always been a trendsetter regarding salaries over the years.

“What has happened over the years is that when the Government, which is the largest employer, increased salaries and employee benefits for its workers, the private sector and industry also do the same. The Government has been setting the pace and the private sector has always followed. Any change in the welfare of the public servants has always seen the private sector doing the same and I hope to see this continuing,” said Mr Shoko.

Mr Shoko who is also a consultant for Bousted Beef Company in Bulawayo said the Government also led from the front when the country went into lockdown following the Covid-19 outbreak and offered a Covid-19 allowance.

“Civil servants were awarded a Covid-19 allowance which was paid in foreign currency and industry and the private sector also followed and offered allowances for their workers which shows that the Government is actually a trendsetter in employee welfare,” he added.

In the recent increase, the Government has also increased the foreign currency allowance from US$200 to US$250 and teachers are also enjoying free primary school education for up to three children. The Government also took into consideration teachers that have no biological children and awarded them a US$80 allowance.

Economist Morris Mpala, however, said despite the 100 percent increase in salaries for civil servants, more needed to be done.

“The 100 percent salary increase is good, yes but still civil servants rank low as compared to the private sector. It is of course in the right direction that they were awarded this increase but it does not really motivate the private sector to do much as they still remain high in terms of salary rankings,” he said.

Mr Mpala said that while there was an increase, inflation still was affecting them. He urged retailers not to increase prices on that basis.

“Look at what has been happening to the US dollar rates of late, the lowest ranking civil servants have that salary affected by inflationary pressures and more still needs to be done to circumvent this,” he said. – @NyembeziMu