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Zimbabwe Industrial Group Says Economy Still Too Weak to Support Wage Hikes


CZI Chief Executive Officer Kumbirai Katsande acknowledged that there is tension in the workplace around the issue of wages and salaries, but said Zimbabwean businesses face many challenges including erratic electric power supplies

The head of the Confederation of Zimbabwe Industries said Wednesday that while the economy has mended since the unity government was formed in 2009, neither companies nor government can afford to increase pay.

CZI Chief Executive Officer Kumbirai Katsande acknowledged that there is tension in the workplace around the issue of wages and salaries, but said Zimbabwean businesses face many challenges including erratic electric power supplies which are hurting production, revenues and profitability.

Civil servants are demanding a base wage of US$600 while the Zimbabwe Congress of Trade Unions has given employers until July of this year to pay salaries no lower than the poverty line of US$500.

The ZCTU has also called for a consumer price freeze if wages are to remain on hold.

Katsande told VOA Studio 7 reporter Patience Rusere that workers must accept that the economy is not stable enough to meet their demands considering the dismal condition of the economy just over one year ago.

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