GOVERNMENT yesterday said it had not yet ruled out the possibility of paying civil servants salaries in United States dollars citing the current US$175 incentive as evidence of its willingness to meet workers’ demands.
Finance minister Mthuli Ncube told journalists after a
post-Cabinet briefing that discussions between government and civil servants
were still ongoing.
“I cannot comment on ongoing negotiations and details
between civil servants and government as yet … As government, we are sensitive
to the plight of all the civil servants and we will do whatever we can to make
sure we can accommodate the demands, obviously within the budgetary constraints
we face,” he said.
“As you know, the government is offering US$175. So on that
part, we have already shown we are willing to make sure that part of the
salaries is in United States dollars, but as to the recent request from civil
servants, all those things are under consideration, under discussion.”
Ncube made the remarks as nurses and teachers yesterday
continued with their protests demanding United States dollar salaries and
improved working conditions.
Civil servants have rejected a 100% government wage
increase with effect from July 1.
At Parirenyatwa Group of Hospitals in Harare, nurses and
doctors gathered outside, with police observing them from a distance.
Reports said health workers and educators in other cities
also did not report for duty.
Zimbabwe Nurses Association president Enock Dongo said
other civil servants had now joined them in solidarity.
“We held a meeting with the Health Service Board yesterday
(Monday), and they only told us that government will support us with buses to
transport us to work, and also provide us with canteen incentives. They said
nothing about our salary grievances. Therefore, we will continue with the
strike until government listens to our concerns,” he said.
Zimbabwe Confederation of Public Sector Trade Unions
secretary-general David Dzatsunga said they would not accept the 100% salary
increment.
“We want US$840. All civil servants are with you in this
struggle,” Dzatsunga said.
In a statement, the Community Working Group on Health
(CWGH) urged government and the striking health workers to find common ground.
“CWGH calls for a speedy, fair, and impartial procedure in
resolving this dispute. Long Standing grievances simply should not be allowed
to build up. Let us value and respect our health workers and restore back their
dignity of previous years,” the it said.
When NewsDay visited major hospitals in the capital,
patients were queuing at the out-patients department without being attended to.
Meanwhile, economists have said it would be unwise for
workers across all sectors to accept salary increments in the local currency
given its continued devaluation due to inflation.
Said economist Gift Mugano: “Naturally when salaries are
increased in this manner by 100% because we are now in chronic inflation, what
will happen is that prices will spiral.
“There will be more activity on the parallel market as
people will be rushing to buy United States dollars to preserve the value of
the money they are getting in local currency. The net effect of the increases
in RTGS salaries will be zero.”
Economist Vince Musewe said: “As long as we have a weak and
a strong currency, people will migrate to the stronger US dollar currency. So
people will buy US dollars with any extra local currency that they may get, and
this further strengthens the US dollar.”
Zimbabwe Congress of Trade Unions secretary-general Japhet
Moyo said the economy had self-dollarised despite government’s insistence on
its dedollarisation strategy.
“Therefore, for wages and salaries to have value, they
should be pegged in foreign currency. The exchange rate that is volatile and
inflation make wages and salaries for those earning local currency to be
worthless,” Moyo said.
Academic Anthony Hawkins said the 100% salary hike offered
to civil servants was not in the 2022 budget, and would increase government
borrowing in the domestic market.
“The salary crisis is now making it impossible for
government to achieve zero money supply growth. It will also be highly
inflationary and will result in rejection of the local currency,” he said. Newsday
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