The Zimbabwe Congress of Trade Unions (ZCTU) has criticised President Emmerson Mnangagwa for announcing a raft of economic stabilisation measures without consulting partners at the Tripartite Negotiation Forum (TNF).
The TNF is a social dialogue platform which brings together employers’ organizations, trade unions, and the government to discuss policy proposals before they are promulgated.
In a statement, ZCTU secretary-general, Japhet Moyo also condemned the fact that the measures were announced at night. Moyo said:
We are concerned about the nocturnal announcement of these measures without any social dialogue which goes against the letter and spirit of the TNF.
The ZCTU is also concerned that some of these measures might further weaken the already weak confidence and trust in the local currency and economy in general thereby threatening the few remaining formal sector jobs.
Moyo argued that the measures will result in the further informalisation of the economy and stoke up inflationary pressures. He said:
The foreign currency cash withdrawal levy will discourage economic agents from using the formal banking sector which will further exacerbate the already high level of informality in the economy.
The settlement of foreign currency tax obligations in local currency will also result in an increase in broad money supply growth in the economy which could further stoke up inflationary pressures in general.
He demanded the revival of the TNF saying is it the best platform to address the challenges bedevilling the economy. Said Moyo:
Going forward, the ZCTU reiterates its demand for payment of wages and salaries in US$ as the economy dictates.
We also call for all the social partners to come together under the aegis of the TNF to address the macroeconomic and development challenges our economy has been facing in an inclusive and sustainable manner while leaving no one behind.