Zimbabwean businesses and the country's labor movement are on a collision course over a proposal by the Employers Confederation of Zimbabwe to hold salary reviews for workers just once annually based on productivity in various sectors.
Emcoz Director John Mufukare said most of the organization’s affiliates have resolved to end what he described as unsustainable semi-annual and quarterly wage reviews.
Mufukare said each economic sector is now expected to hold a single wage and salary review during 2011 which will factor in the inflation rate and productivity.
He said salary increases will be determined by these one-time negotiations. He said this will help Zimbabwean industries recover with sustainable wages.
“There is no way we can pay workers a lot of money when companies are not producing anything and to make matters worse, we cannot print the United States dollar to boost production in all sectors," Mufukare told VOA reporter Gibbs Dube.
Mufukare said EMCOZ will shortly engage the Zimbabwe Congress of Trade Unions, the country's main trade union confederation, to make the case for once-a-year pay reviews.
But ZCTU Acting Secretary General Japhet Moyo warned that if the business group goes ahead with its plan it should brace for more job actions during 2011.