Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Zimbabwe public workers reject government job cuts plan

Published 09/09/2016, 14:01
Updated 09/09/2016, 14:10
© Reuters. Zimbabwean Finance Minister Patrick Chinamasa delivers his mid-term monetary policy review at parliament in Harare, Zimbabwe

By MacDonald Dzirutwe

HARARE (Reuters) - Zimbabwe's main public service union on Friday rejected government plans to cut 25,000 jobs and suspend annual bonuses, saying that would hurt workers already struggling to make ends meet.

The Apex Council, a grouping of all state sector unions, demanded talks with the government over the plan that Finance Minister Patrick Chinamasa has said is essential to ensure the country can keep paying its staff.

"We believe these measures are ill-conceived and can only further entrench the doom and gloom that has become the lot of the average civil servant," said Cecelia Alexander, head of the Apex Council which called a two-day walkout by teachers, doctors and nurses over pay delays in July, part of the biggest strike in Zimbabwe in 10 years.

In a budget statement on Thursday, Chinamasa said state sector wages took up 97 percent of total revenues collected between January and June, a situation that could destabilise the economy.

It also meant the government risked being unable to pay salaries, Chinamasa said, proposing the suspension of annual bonuses for state employees in 2016 and 2017 to save $180 million annually.

Last year, Chinamasa made similar proposals but was forced to back down by President Robert Mugabe who told him to find the money elsewhere.

Under Chinamasa's plan, the civil service would shed 25,000 jobs, reducing the workforce to 273,000 by the end of 2017. Salaries for ministers and senior officials would be cut by up to 20 percent and Zimbabwe would close some embassies abroad.

Unable to get funds from international lenders, Zimbabwe is in its worst financial crisis since adopting the U.S. dollar in 2009. Economic difficulties have fuelled political tensions, with anti-government protests over cash shortages and unemployment.

© Reuters. Zimbabwean Finance Minister Patrick Chinamasa delivers his mid-term monetary policy review at parliament in Harare, Zimbabwe

Chinamasa is leading Zimbabwe's re-engagement with lenders including the International Monetary Fund and World Bank which are demanding cuts in the wages bill and the clearance of $1.8 billion in debt arrears before they agree to new funding.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.