THE Zimbabwe Congress of Trade Unions (ZCTU) this week
called a three-day stayaway to protest the government’s decision to hike fuel
prices amid a rapidly deteriorating economic environment and rising social
discontent. Business reporter Kudzai Kuwaza (KK) spoke to ZCTU president Peter
Mutasa (PM) recently on various issues, which include the country’s economic
challenges, his tenure as National Social Security Authority (Nssa) board
member and the impact of demonstrations. Below are excerpts of the interview:
KK: What is your assessment of 2018?
PM: The year 2018 is a year where we had a chance, an
opportunity as a country to make things right, beginning with elections and a
chance to sort out our politics as a nation. Unfortunately, we let that chance
slip. We were supposed to make sure that as a nation we would not have disputed
elections. We were supposed to make sure that after (former president Robert)
Mugabe has gone, we will rebuild and reform our institutions and ensure that
they are independent.
We were supposed to ensure that there would be separation
of power within the branches of state. We were also supposed to bring people
together, come up with a national vision and build national cohesion to get us
out of the economic, political and social crisis that we have been in for the
last 20 years.
Unfortunately, the government failed to harness both the
approval of the international community and the approval of citizens and we are
back to where we were. That is a state in crisis characterised by disputed
electoral results and a debilitating economic crisis.
We as labour can safely say that the year 2018 was a missed
opportunity. We have also witnessed suffering and hardships among the citizens
starting with the disruptive 2% tax imposed by government on the economy.
Workers have lost all their savings and pensions and they have also lost value
of their salaries and the general citizenry have been dispossessed of their
livelihood.
This is evident in the informal sector where there are in
running battles with the police and local authorities. If nothing is done, many
families are going to face serious social challenges.
KK: What is your view of the 2019 budget?
PM: For starters, the current government has not taken time
to bring people together to discuss the direction the country should take. They
have unilaterally come up with their own vision and come up with the mantra
“Zimbabwe is open for business”.
They have now couched another mantra called “austerity for
prosperity”. Without looking at the budget, there is a disjoinment between
state and the citizens. The citizens have not been effectively allowed to bring
in their input.
The government has disregarded the input of its citizens in
terms of its policy strategy. We have a new minister who came up and,
immediately without consulting any stakeholders, produced the Transitional
Stabilisation Programme. Government came up with the vision for the country to
be an upper middle-income economy by 2030 without consulting anyone. Government
is going it alone. It is not carrying anyone on board.
The budget was anti-poor, anti-workers and will not address
the real challenges the citizens are facing which include unemployment, poverty
and inequality. Overall, it is not a budget that addresses the needs of the
poor man and the ordinary citizens. As long as the budget failed to address the
issue of currency and exchange rate distortions, the country will not succeed.
The failure to address distortions is going to create winners and losers and
the majority of the workers and the poor are going to be the losers.
The US dollar is now being used as the unit of account, but
workers do not earn in US dollars. We also expected a budget that would bring
about inclusivity. Of course, it is talking about shared growth but there is
nothing tangible that is supporting the shared growth. We are expecting to see
many workers in the public sector losing jobs.
Although we support the cleaning up of the public sector in
terms of removing ghost workers and political appointees who are doing nothing,
we need to be mindful that we have few teachers and doctors compared to what we
must have. Government is driving free market economics. Free market economics
have failed everywhere and the world is currently in crisis because of free
market economics. The government wants to please a few elites at the expense of
the majority and it is the majority that must carry the burden. The policy
thrust which has informed the budget is very wrong for the economic recovery of
Zimbabwe.
KK: Given your description of the budget, how does it
amplify your call for workers to be paid in foreign currency?
PM: When we made the call for workers to be paid in forex,
we experienced many challenges. But now service providers are demanding forex
and the government itself is demanding forex. The minister has said (import)
duty should be paid in forex. The Zimbabwe Revenue Authority is also demanding
to be paid in forex. If everyone is demanding to be paid in forex, it becomes
logical that workers in these companies must be paid in forex.
If you also look at the distortion, we are purchasing in
shops whose prices are pegged in US dollar. The US dollar is basically is 1:3
with the bond note at the parallel market. If workers are to continue to earn
in RTGS, it means their salaries have been devalued seriously.
We are now earning less than a third of our bargained
salary. There is no alternative in our view as long as supermarkets, service
providers and government itself now want forex. Workers must earn in foreign
currency.
KK: How important is it to legislate the Tripartite
Negotiating Forum?
PM: Legislating the TNF has been an important aspect since
2001. We came up with this after realising that the country is in a crisis. We
have been in a crisis for almost two decades now and the legislation of the TNF
has been on the agenda for nearly two decades. The legislation of the TNF has
been on the agenda in the last three Parliamentary sessions. This simply shows
there is lack of political will on the part of government. Government does not
want to involve citizens and it does not want to involve labour in discussing
policy formulation and discussing economic policy development.
The only way to come out of our current crisis is through
social dialogue and coming up with a social contract. Legislation of the TNF
has never been more important as currently. It is still a very important aspect
but it seems the government does not want to involve anyone in policy
formulation.
KK: Looking at the issue of retrenchments, how widespread
were they in 2018?
PM: I am yet to get the actual figures but, given anecdotal
information, it goes without say that companies are struggling and there have
been retrenchments across various sectors and now with the 2% tax, the havoc
that it caused in the economy we know the companies have been strained,
especially after the government failed to address the issue of currency
distortions. This will lead to more retrenchments and companies folding.
KK: How effective are demonstrations that you call for from
time to time as a tool of protest?
PM: We think they are effective, basing on the response of
the authorities. I think for sometime we had not seen the heavy handedness of
the police when we called for demonstrations. When the demonstrations were
supported by the citizens, the police came out in full force, in full armour
and blocked us from demonstrating.
From that aspect, we think they are very effective because
we demonstrate to send a message to the state. So if the state comes down
heavily on you it means you have sent the message eloquently and effectively.
It shows that the dictatorship does not want to deal with the message but deal
with the messenger. It is a constitutional provision. It is not put there for
design, it is there as an effective means for communicating, lobbying and
advocacy. Unfortunately we have a leadership that does not respect the
constitution.
We will continue with demonstrations because they are an
effective tool of communication and it is a constitutional provision.
KK: What is your view of the National Health Scheme being
proposed by government and has been on the cards?
PM: It will never take off because government is not
serious about policy implementation. A national health scheme is a good idea as
long as you address the macro-economic fundamentals. You cannot have a national
health scheme when only 5% of the country in the formal economy and expect them
to fund the whole population. The math does not add up. The economic
fundamentals must be addressed first before we can experiment with the national
health scheme.
KK: You were a board member of the National Social Security
Authority, what is your view of the entity?
PM: Nssa is a mirror reflection of the nation. If the
government is corrupt and does not follow due process it also affects Nssa.
Nssa has been abused for a long time and, when I entered Nssa and tried to
address these issues and reform it from within, I was dismissed and had to
fight to be reinstated.
My view is that we need business, labour and citizens to
fight for Nssa reform. Currently it gives too much power to the government
through the ministers who have pursued their own agenda at the detriment of the
nation. We need to give power back to the stakeholders. Zimbabwe Independent
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