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THE honeymoon could soon be over for top earning parastatal bosses following moves by government to review their salaries against the performance of the loss-making companies.
Government is desperate to pacify civil servants who downed tools last Friday protesting against poor pay.
The crippling strike has thrown the spotlight on some utilities who pay their employees as much as US$5 000 a month.
Civil servants are also demanding that the government must force Zesa, TelOne and municipalities to reduce their tariffs.
Professor Welshman Ncube, the Minister of Industry and Commerce last week said government was working towards reviewing the tariff and salary structures at state enterprises to lessen the burden on industry and ordinary Zimbabweans.
Ncube said “it does not make any sense” for utilities to continue charging Zimbabweans earning poor salaries exorbitant amounts to finance their top officials’ hefty salaries.
“The government has directed that there ought to be a general review of tariff structures used by some utilities,”said Ncube who was officiating at a ceremony to commission a Bakers’ Inn plant in Harare.
“Some of these utilities, for example, electricity are a major cost driver in industry operations.
“Entities such as Zesa and Hwange have salary structures, which have no relationship with their operations.
“How can they pay themselves salaries of $4 000 and $5 000 in an economy such as ours and pass the cost to people who earn $100?
“That doesn’t make sense, which is why we feel there must be a rationalisation of some of these things.”
Ncube said government was concerned about high charges levelled by local authorities as well as electricity and water utilities, adding that these were behind industrial unrests which could reverse positive developments recorded since the formation of the inclusive government.
Civil servants want their salaries raised from a minimum of US$120 a month to US$630.
National Bakers’ Association (NBA) president Brumwel Bushu conceded that low salaries for ordinary workers were affecting sectors like the baking industry.
“We want government support in terms of accessing long-term financing.
“We are also asking the government to ensure that our consumers access money, otherwise our products will not get to people’s homes,” Bushu said.
Striking civil servants have expressed concern that their counterparts at parastatals are drawing better salaries.
“While as government we have no desire to attempt any price control, we have a responsibility to ensure that those who provide these services do so in a way that makes sense, pegging tarrifs at reasonable levels,” Ncube said.
Zesa chief executive Ben Rafemoyo said he was “not comfortable to discuss this issue with the press” because there had not been any official communication to that effect.
“It is indeed a very important subject which I believe can best be debated in a formal way,” Rafemoyo said.
“I hope our principals will create room for people to sit down and discuss so that any points of misinformation are explained and also that any decisions taken will not affect the economy at large.
“Sub-optimum tariffs as was in the past will negatively impact on operations and the country’s capacity to attract investment.”
Ncube urged employees in both private and state entities to be patient with their employers as they try to improve their revenue generation capacity.
“We are painfully aware as government of the challenges that remain.
“The capacity of industry to pay wages is greatly constrained, and that of government is even more constrained, since the government does not produce anything,” he said.
“Industry needs time to re-equip, to re-establish itself.
“The government also needs time to do all the things it is enjoined to do.
“We must all acknowledge that the situation is improving by the day.”
He congratulated Bakers’ Inn on its latest achievement and urged other companies to follow suit as efforts to fully revive the economy continue.
The bread maker on Wednesday officially launched its US$1.4 million plant in Harare as part of its project to increase production to 225 000 loaves a day countrywide.
A similar line was installed in Bulawayo on the same day and is expected to be officially launched in April.
A third plant will be installed in Harare by June this year.
BY JENNIFER DUBE
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The same goes to say with our politicians, they do not care at all about their people's welfare. They are trying to squeeze every penny from the suffering ma*ses. Now I hear rural people are now paying for water. How can you pay for water that you fetch from a dirty well. What exactly are the people paying for.
Zimbabweans please stand up and learn to say No! This is absolute abuse of power. Zanu PF and the so called MDC are really behaving like village bullies. Enough!