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Zim government says no to salary cuts
South African Press Association (Sapa)
July 13, 2007

http://www.int.iol.co.za/index.php?set_id=1&click_id=84&art_id=nw20070713093014988C940796

Employers must not cut workers' salaries but should, instead, review them upwards despite the ongoing reduction of prices of goods and services, said the chairperson of the Cabinet Taskforce on Price Monitoring and Stabilisation, Obert Mpofu. Mpofu said the government would assist companies which are facing viability problems soon after the conclusion of the blitz on overcharging businesses, Zimbabwe's Herald Online said on Friday. Mpofu, who is the minister of industry and international trade, allayed fears that reduction of salaries would follow the price blitz. "We, as the government, will not slash salaries. There is nothing like that. Our idea is to give workers a significant disposable income." Workers have been anxious since rumours that salaries would be reduced began doing the rounds. Two weeks ago, the government directed businesses to freeze prices to June 18 levels. This came against a background of at times thrice daily price increases by most businesses across the board from manufacturers, retailers to service providers, which had severely eroded workers' incomes.

Mpofu said Zimbabwe's detractors were busy spreading rumours that the government would order a cut on salaries. "It's being propagated by enemies of the state who don't want to see positive developments by the government. They are just economic saboteurs bent on frustrating the government's efforts to restore sanity in the business sector," he said. Workers' unions from various sectors of the economy are negotiating for wage and salary increases in line with the April poverty datum line of Z$3,5-million. Mpofu said the government would work closely with firms that complied with the directive to revert to June 18 prices. Funds to assist the companies were in place although he could not reveal the exact amount allocated. The minister appealed to other companies to reduce prices to June 18 levels before crack teams raid them. Companies that were not complying with the government directive risked losing trading licences as well as being nationalised, he warned.

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