Finance Minister, Professor Mthuli Ncube, yesterday challenged companies in the private sector to follow the government’s example by raising salaries for their employees in order to keep them going.
Speaking during a Daily News organised Business Breakfast Forum held in the capital, Ncube said:
I am sure there are a few civil servants in here who are saying after the introduction of the Zimbabwe dollar, what about our salaries? We are going to deal with that in the next week or so. We are going to make an announcement in terms of a cushioning allowance for civil servants and, industry please can you follow suit and do the same for your employees.
What we are noticing is that you (private sector) are making these fantastic profits but you are not looking after the workers; you are looking after the shareholders only: Look after your employees as well, increase their wages so that they are able to deal with inflation pressures.
Ncube also indicated that Treasury has already calculated a percentage it intends to increase with the salaries of civil servants. He added that Treasury was only waiting for the outcome of negotiations between the government and workers.
Currency reforms since February have resulted in retailers increasing prices of their commodities for prices to be commensurate with the value of the shedding local currency.
Inflation eroded workers’ salaries resulting in some of them writing to their employers indicating that they were no longer able to fulfil their contract obligations due to economic hardships.
More: Daily News
Professor Mthuli Ncube is the Minister of Finance and Economic Development.He was the Chief Economist and Vice President of the African Development Bank ,financial, economics, investment, and public policy expert, entrepreneur and academic. Professor Ncube divides his time between the private sector in Switzerland and... Read More About Mthuli Ncube