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Domestic wage rise will erode RBZ gains: Emcoz
The Herald (Zimbabwe)
April 20, 2005

http://www.herald.co.zw/index.php?id=42699&pubdate=2005-04-20

The recent wage increase for domestic workers will erode the gains made by the Reserve Bank of Zimbabwe (RBZ) to revive the economy through its monetary policy interventions, the Employers' Confederation of Zimbabwe (Emcoz) has said.

Mr Mike Bimha, the Emcoz president, said the increase, announced by Government last month, could have the consequence of reversing the "good work" achieved by the monetary policy.

"Statutory Instrument 42/2005 has the potential to undo all the good work achieved by monetary policy interventions to date. Emcoz should continue to seek accommodation with the relevant authorities on this issue," said Mr Bimha, in a statement.

Government increased domestic workers' wages by nearly 1 000 percent from a minimum of $90 000 to $850 000.

Wages for a cook/housekeeper who resides at the employer's premises were increased to $850 000, while those residing elsewhere would be entitled to a minimum wage of $1 256 000 with effect from March 1 this year.

Mr Bimha said Emcoz would consult with relevant stakeholders on the matter following which its members would be informed of the outcome.

He, however, urged all members to pay according to the gazetted wages pending the results of the deliberations.

"In the meantime, Statutory Instrument 42/2005 is the law of the land and members are advised to comply," reads part of the statement.

Some employers have also expressed concern at the increases, saying they are both unrealistic and unaffordable.

Mrs Priscilla Nyahuma of Glen View said she could not afford to pay the gazetted wage of $850 000 as it amounted to a third of her salary.

"If Government wants us to increase domestic workers' wages, then our salaries should also be revised upwards," she said.

Another Harare woman was of the opinion that it was for the domestic worker and his or her employer to mutually agree on a wage rise.

"You cannot expect someone who takes home $2 million to pay $850 000. They will be left with just over a million to survive on," she said.

"I've told my maid and gardener that I can only increase their wages by $150 000 and they have agreed. So it's a matter of understanding between the workers and their employers," she said.

The Government, however, said the increases were necessitated by the rise in the cost of living over the past few years, which has not spared the domestic workers, some of whom have families to look after like everybody else.

Government also defended the almost 1 000 percent margin of the raise — which is over tenfold above the RBZ's recommended maximum salary increase of 95 percent for this year — saying the latter percentage was meant for the general workforce.

Earnings of domestic workers were far below the minimums stipulated in other sectors and industries.

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