A FELLOW mine workers union has condemned the recent salary adjustments agreement between the sector’s National Employment Council (NEC) and the Association Mine Workers Union of Zimbabwe (AMWUZI), describing it as a “mockery.”
The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU), with a membership of 10 400 has accused AMWUZI, Zimbabwe’s biggest mine workers union of “selling out” and being insensitive to the plight of workers.
Zimbabwe’s mining industry accounts for 13 percent of the gross domestic product and is the largest foreign currency earner.
Workers in the mining sector were awarded between 46 percent and 50 percent wage increase, which will see the lowest employee earning $45 000 from $30 000 a month.
The highest paid will now earn $104 000 from $71 000. Fifty five percent of the salary will be paid in the US dollars, at the prevailing official exchange rate and the balance in local currency.
“We would like to unequivocally state that the recent salary adjustments, which were reached between the National Employment Council and AMWUZ is nothing but a farce,” ZDAMWU secretary general Chinhema said in a statement. “The increments are nothing but actually a selling out salary negotiation outcome,” he added.
“This is a mockery for the mine workers considering that the Poverty Datum Line (PDL) is pegged at $70 000 and most mining districts across the country are using US dollars , Rand or Pula.
“As a union we are reiterating that minimum salary be pegged at US$40, or to at least revert to 2018 pay structures of US$286 and the remaining balance in RTGS.”
The cost of living in Zimbabwe has continued to rise, although slower for most of 2021 compared to prior year, as most retailers peg prices using black market rates.
This is despite the fact that some of the retailers are accessing foreign currency on the auction system. Indexing prices to open market exchange rates has eroded the buying power of many workers.
While the official exchange rate is $120: US$1, the black market rates are ranging between $230 and $250 to the greenback.
“The pricing regime where prices are pegged using the black market rates is eroding the spending power of consumers,” analyst Mr Carlos Tadya said.
“Supermarkets… some obtaining foreign currency on the auction system are also charging prices using parallel markets rates and this challenge will remain until the point the rates (black and official) converge,” Mr Tadya added.
Zimbabwe’s annual inflation accelerated to 66,1 percent in February, up from 60,6 percent a month earlier. According to the ZIMSTAT, the monthly inflation in February surged to 7 percent, gaining 1,7 percentage points on the January rate of 5,3 percent.