ZIMBABWE
Economists have warned that a massive pay settlement for the Zimbabwe Public Service would erode any Budget surpluses the Government hoped to achieve.
The remarks come after the Government and the Apex Council, representing public sector unions, agreed on wage increases ranging from 133 per cent to 172 per cent depending on salary grade.
The unions had previously rejected offers of 92 per cent and 100 per cent.
Economic expert, John Robertson said that while the salary adjustments were below Zimbabwe’s runaway inflation rate of around 500 per cent, they were still unsustainably high.
“They are unsustainable considering that the current Civil Service workforce has too many people than is needed,” Mr Robertson said.
He said there was an urgent need to reduce the Public Service workforce and then pay good wages to a reasonable number of employees.
“Even though Government is recording budget surpluses, there is high risk these will be wiped out because the Government is paying put twice as much as it should be paying,” he said.
Another economist, Naome Chakanya predicted that overall Government expenditure would exceed predicted figures.
“The new wage structure calls for Government to immediately unveil a supplementary Budget because the resources that have been set aside will eventually be wiped out,” Ms Chakanya said.
She said the settlement would result in even higher inflation which would worsen poverty.
Meanwhile the Public Service Commission (PSC) is planning to install solar power facilities in all Public Servants’ households.
Deputy Chair of the PSC, Mary Margaret Muchada said that the project was part of the non-monetary incentives the Government was intending to roll out for workers.
The Zimbabwe Broadcasting Corporation reported that the PSC also plans to introduce housing schemes, medical care and funeral assurance facilities for its workers.
Harare, 1 February 2020
