‘Salary cuts could trigger lawsuits’

GOVERMENT could face an avalanche of lawsuits after it unilaterally slashed salaries and allowances of parastatal bosses to a mere $6 000 per month, labour law experts warned yesterday.

BY MOSES MATENGA
STAFF REPORTER

Click here to see the list of salaries

According to experts, the move could also trigger massive brain-drain as thousands of professionals would likely look for greener pastures elsewhere.

Finance Minister Patrick Chinamasa on Tuesday announced a cut in salaries of chief executive officers of parastatals and local authority bosses to a maximum of $6 000 per month pending the finalisation of an appropriate remuneration structure.

Labour law expert Rodgers Matsikidze said it was illegal for government to impose the $6 000 per month on parastatal bosses as that had legal implications.

“What has just happened is a Cabinet directive and the next thing is boards should engage the employees and try to negotiate a revised contract. Either they agree or say pay us until end of contract. I didn’t read it to say that’s the salary to be given. It’s either there is mutual settlement or an employee is bought out of contract and those are options that are there.”

Matsikidze said the government as a shareholder cannot impose a position on the salary issue.
“It’s (an) unfair labour practice,” Matsikidze said. “Legal processes should follow and government is not above the law.”

But Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Japhet Moyo said the cut was long overdue and the money taken from the huge salaries must pay ordinary workers who were struggling to make ends meet.

Some of the money, he said, could be used to provide service delivery. He said the government could face legal action for unilaterally slashing the salaries of parastatal bosses.

“That will be a big challenge since these people had contracts. If it was a collective bargaining agreement that went through due processes and if things were done properly, it would have been difficult and of course one could sue,” Moyo said.

He, however, said it would be difficult for most of the affected bosses to seek greener pastures outside the country as their demands would be too high.

“Who needs people earning $20 000? They can’t pay that in South Africa,” Moyo said. “We know government has made political decisions before and this is a political decision that no court can challenge.”

Chinamasa told journalists after a Cabinet meeting on Tuesday that government was prepared for any legal action.

“If anyone decides to sue we will take them up and that’s the least of my worry,” Chinamasa warned. Tax expert, Tendai Mav hima said that it was a misconception that the parastatal bosses were evading tax by giving themselves hefty allowances.

He said all allowances for non-civil servants were taxable.

Mavhima, however, said if government unearthed tax evasions, action could be taken.

“One can be audited and made to pay tax for six years up to now. There is a provision in the Tax Act and that period can open indefinitely,” he said.

Ordinary Zimbabweans, however, lauded the salary cuts describing the move as long overdue.

A student rights activist Pride Mkono said: “It was a welcome move which was long overdue. They must have those assets acquired through these illicit activities seized and forfeited to the State as a mechanism of recovery and then they must all just be fired.” Chitungwiza Residents Trust (Chitrest) also said most residents had welcomed the salary and allowance cuts.

“What remains now is for the government and other interested stakeholders to put mechanisms in place that will ensure that this directive will be implemented in all public institutions for the benefit of the people,” Chitrest said.

A Harare resident George Mungoni said: “It was long overdue but they should make sure it’s properly implemented.”

Meanwhile, Chinamasa defended the more than $3 000 salaries earned by ministers saying it was enough and justified for them as they worked hard.

He said President Robert Mugabe was getting slightly more than $5 000 including benefits.

“Who would begrudge me with the $3 000 that I get given the work that I do?” Chinamasa said.

Do you have a coronavirus story? You can email us on: news@alphamedia.co.zw


71 Comments

  1. If they can get the greener Pastures, the DOORS are wide open, they can leave than strain the bleeding economy at the expense of the people who are doing the actual work. We welcome the move Minister. Best move Cde Minister, no going Back. There is nowhere they will get better salaries than $6000 a month.

    1. taura hako Mutema, ngawaende kumagreener pastures kwacho tione kuti wanopihwa marii, and they will never be executives either……………..

    2. Hanzi “proffesionals will go to greener pastures…” Kunemaproffesionals , mune proof? Vazhinji vari kutop uku zvidhura zvakangodhonzwa nekuti vazukuru vanyakuti uye vanoenda kuparty chakuti chakuti kana kuti vanoba vese nangana. Ndiyani asingazive kuti poor service delivery inobva mukushayiwa zivo? Ngavaende tione vakawana basa anywhere out of Zimbabwe. Anyway, vari kumboregererei kuenda vachiti urayira nyika so? Hanzi “brain drain”. Aaaaaa kana zvichireva “draining water from these clueless, corrupt heads” saka let the brain drain hapen fasta fasta. This country does not need such retarded brains. Regai zvihyende!

    3. my co-worker’s aunt makes $70 hourly on the computer. She has been without a job for seven months but last month her paycheck was $19034 just working on the computer for a few hours. Read more on this web site

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  2. Thanks Mr Minister but now make it a Statutory Instrument so that it is binding. So far it is just moral suarsion and these greedy vultures will ignore it. If it becomes a law, then surely we can see compliance

    1. @Gabez- Clever idea, lets move fast to gazette the statutory instrument. Many among us may not realise the damage the parastatals and quasi government bodies were doing to our cost base. It is because of this skewered cost base that our prices has been so sick to the extent that companies can no longer compete with their counterparts in the region. You see parastatals are found in all the avenues of our endeavour and as long as their cost base is not carefully scrutinised and corrected we are digging a huge pit for ourselves. I have to salute the Minister for the spirited effort he has taken this on.. Now can we have no board director sitting on more than 3 parastals, please? And lets also manage incestuous relationships in same!

    2. thank you Gabez for that

  3. Oh please, whats lawsuits, these are political appointees, there are never going to raise a finger about this. They are even lucky to have retained their positions. They have just run down their respective departments, ngavaite basa chairo and everyone will feel they deserve the remuneration.

  4. kana takambotora minda totadza kuCutter maSalaries. Zvidiki izvi maZim dollar akarova wani muma Bank account madhongi achikuma.

  5. pay the worker

    Great move indeed.What is really painful is that the hard working people at such places earn peanuts while the CEO and Management get the best of everything. When approached by workers for a pay rise, they always say there is no money to meet any increments.

    1. very correct, DZ (no.27)was getting an allowance of more than $10 000 while his employees were getting an allowance of $65 only. He told workers in 2010 that the door is wide open if there are not happy with the salary of min $230. and u claim to be christian. musadaro. zimpost continues to appeal for a $20 salary increment awarded by an abitrator in 2009 but muchiona mari yese iyo. be human sure.

  6. if it goes to law, these guys will win and continue getting the salaries they are getting. so what will be best way. the minister should re-budget and come up with a new tax law. decrease the tax charged on lowly paid people eg $1500 downwards and raise it on anyone who earns more than that up maybe 75% or 80% even 90%.
    This thing is the test of whether this zimbabwean mafia gang can walk the talk. all i know is that it is in trouble.

    1. Then Gvt shuld sue them first, for tax evasion (more benefits than salary), Fraud (you cant borrow money for salaries), abuse of office, etc. my guess is they are very lucky to be out of prison and retain their jobs all at the same time.

  7. no one seems to be talking how far down this will go are we going to cut for every parastatal worker?

    1. @tawa- not necessarily. But all salaries in paras will need revisiting in the light of availability of resources and rates obtaining across the economy. I would say a line or network engineer at Netone would be expected to get a salary that is related to their counterparts in the industry. I imagine if Netone got its act together why should an engineer of similar experience not have the same or even more than the one at Econet..but the money has to be found first not so?

      1. Why is it being done by chinamasa and moyo only where is minister responsible for these parastatals and minister responsible for labor.

        1. what will change really now?,They kill economy and now they set what people should earn because of what you have done. Sure for some one who makes hundreds of thousands on big farms and bribes some of these ministers should not talk too much. They want to benefit alone like the whites did then but only these blacks are now worst because havatodi kuti muzoita kana chinhu. They recommends $60 per month for farm workers, wanna know why? because they own big farms and more farm workers don’t ever think they do this for the nation you will be a fool to think that. After these salary cuts they are going to interfere with operations of these state enterprises tune them to benefit their interests. why do you think they are failing, If you follow media before bills were cut they was an article which was showing bills owed by these people, next thing they propose they be cut kkkkk and iwewe wabvisirwa ka $300 you celebrate Mr they have had $20 000 – $30 000 removed from their bills on multiple owned properties. Now check the herald they want to amend labor laws for whose benefit hint ” THEM” they have moved to own industries now so what do they need to do put harsh laws for employees and kill that stumbling block Employees shall suffer hence the nation will suffer. imagine hama dzedu in those industries. These guys really are they better of than Whites maybe better then you could manage a house in glenview, mbare, high field, Kambuzuma now you cant even dream on owning one working for these guys. OPEN eyes lets not celebrate too quickly otherwise these parastatal workers who will be obviously affected down to the lowest employee can just be victims like us tomorrow, yesterday and today.

          1. Tawa unedzungu rekuda kuzivisa manhingi iwe usingazive, tanga waziva dont jus base yo arguments on speculation, unorasika hama ukamhanyira kumedza kutsenga kuchada, pause first then reflect wat did u do kuchikoro @ higher level.usamhanya bro this myt be a good move but dont be conclusive pa speculation yako.got it bro

  8. jonso for sanity

    hey ngavaende kani anhu awa….braindrain yei? do we need those brains? we got thousands of graduates out ther vamwe vane masters some even phds vasiri kudya wat they surely deserve, varikutodawo mabasa aya. let them go. we can fix the drain. maybe tingato promotewawo. BRAIN DRAIN MY FOOT….ngavaende mgavaende vanhu ava madh***i!!!!!!!!!!!!

  9. Rational thinker

    What law suits? That is day dreaming. This is the reason why Govt will be reviewing the labour laws, and they should be made to apply retrospectively to neutralise those CEOs who want to mount an immoral battle. People are on the side of Govt, at least on this one. Even our judges will not just interpret the law outside the moral fabric and ethos of our society. We can not be held hostage by a few greedy individuals. If necessary Govt should promulgate a Statutory instrument or Presidential decree, while harmonising the laws. This is one Presidential degree that majority of Zimbabweans. will most welcome. US20 000 per month, my foot-where have you seen such a salary in a country with a GDP of less than 9 billion? Here in pvt sector we sweat to raise just that amount as a monthly turnover for a SME/medium sized enterprise. Things are tough in this country.

  10. Who care if these political apointees leave? Do they have expertise and required experience, think about GMB Mandizha ex policeman, ZBC -Muchechetere, news reporter, the list is endless. If they can not justify those hefty salaries let them leave and we have more experienced personnel than available jobs. its just another political fallacy where a minister says we do not have adequate nurses because they left for greener pastures yet those that are qualififed are not enrolled into the system.

  11. sir i think the thought that if these salaries are cut we will have massive brain drain is not true. in fact most those we are paying now are not the brains we need at all. if we put the salaries at that,(6000 or less) we will in fact get the right brains which are being blocked by these good for nothing thieving brains. so let them go we need the right people there.

  12. Greener pastures-ngavaende.vagara vanonoka.hakuna nyika ingade kubhadhara mazidhora akadaro.ngavatotende $6000 yavasiirwa iyi.

  13. kana boss vakatirwa yavo ngaasiye yangu yakadaro.

  14. brain drain???……..does tht apply to pple lyk mahachi? city of harare there are no roads and i dnt even drink municipal water.

    1. Chenjerai Hove

      What brain is there in the head of a man who accepts 500 000 dollars a month when the organization is collapsing? These greedy fools should just be sacked.

  15. kana boss vakatirwa yavo ngaasiye yangu yakadaro.thats my only worry.this is for the ceo’s but eventually this will be felt by us ….isu povo yepakambani

  16. What brain drain are you talking about? One thing for sure is that very few of them are that marketable. I challenge them to prove everyone wrong by resigning from their current jobs and taking up more lucrative positions elsewhere!

    1. @Ian- Indeed let them try and get 6 000 elsewhere? Its laughable..some of them are not even worth half of this very generous 6 000. What they should be thinking of is how fast they can sell those houses which pushed the housing prices over the roof and pay what they owe the parastatals..where on earth do people pay themselves allowances which are three to four times more than their salaries..Kumwe kusanyara kwacho kunosemesa. A similar exercise should also visit the private sector..this may be reason why products which are produced 1 000 kilometers away are cheaper than those produced locally..Our pricing of everything has to be relooked at deeply.

  17. Taura hako Mutema, ngavaende ku greener pastures. After all there a lot of more qualified people who do not have any employment and would be grateful to get even less that $6 000,00
    yacho. Honestly how can people be so selfish. Better vaende!

  18. serves them right. you cant give urself 200 000/month and expect us to back u up saying we fear brai drain. if you want to go they can go, what innovative thing hev they recently done tht warrants them those kinds of monies while sm ppl are earning 250

  19. brain drain is only relevant when one is productive and decides to seek greener pastures….these people do not fit into that category…we will gladly wave them good bye if they decide to go

  20. matsikidze get away wat implications..this is corruption cancer..let them go and and search for greener pastures in uk and u wl see if thy cld win….mbavha

  21. Ndeupi retired brigderer wanunoti ari ku runner those government companies zvakanaka waungati deserve such an obscene salary in my view hapana kana creche inoto runner better than nrz gmb zesa to name a few

  22. These CEOs will not get more than $6000 anywhere in the world. For a start, First countries will only hire CEOs from comparable economies.These CEOs are dreamers if they think they can get higher paying jobs anywhere else in the world, particularly outside Africa. $6000/month is as good as it gets!!

  23. Is this Matsikidze guy a lawyer or what? Are lawyers allowed to advertise? Because all that he is saying sound like an Advert for Services as a lawyer for those that are naive as to contemplate suing the government. Well Tough Luck Matsikidze , Chinamasa is a lawyer too a crude one for that matter, he says he is ready and waiting, you think he had not seen this coming? Now he has something to rave about something he really knows about.

    1. Well said….The man represents one of the fat cats at this notorious mobile phone company. Talk of defending the indefensible!! He is preparing for “windfalls” from the “thieves”

  24. These CEOs will not get more than $6000 anywhere in the world. For a start, The only potential is in First World countries, but these will only hire CEOs from comparable economies.These Zim CEOs are dreamers if they think they can get higher paying jobs anywhere else in the world, particularly outside Africa. $6000/month is as good as it gets!!

  25. Finance minister is very correct.how can struggling parastatals like zimsec pay such salaries yet grade 7 certificates are not being printed coz of financial problems

  26. Firstly the gvt is in such a story state to have allowed this kind of rot in the non performing gvt organisations. All the Ministers whose ministries under which parastatals giving out these obsene salaries but be fired for sleeping on duty. They must stand before parliament and explain why they allowed this to happen otherwise its most likely that they were benefitting from this salarygate. What good ecplanation is there besides this? Then comes this that you call finance Minister trying to create the impression that gvt is doing something about it. Firstly, i will not desire to lead a parastatal if i know i can still get more money through a chiken or potato project. Secondly the guy thinks the gvt is immune to the same laws that it formulates. Far from it! Noone is above the law, even the state itself. Even if the gvt rushes to gazzette it as law, the new salary position must be revonviled with existing laws relating to labour. Unless Chinamasa is telling us that the bosses of the parastatals are political appointees who will be reminded of how they got into office if ever they contemplate going the legal route for recourse. Otherwise any citizen whose rights have been trampled upon has the law protecting such people from abuse.

  27. So Mr Report is Dofo rikasiya basa or is fired you call that Brain Drain – this report is so stupid and naive – this is so sad nxaaaaaaa

  28. Uyo matsikidze uyo ngaadzokere kuchikoro futi. his analysis is so poor. Ngavaende

  29. amana from yo ordinary view its a gud idea but overally dis guys are killing parastals but weaning these companies eg netone to be a private company they were trying to tie down experienced work force but now they are giving econet and telecel right to loot experienced workers from telone and netone and u will see the demise of this companies ….what about tax if they were collecting let us a million from dis parastals which means they have cut revenue collection by 7 eights meaning gvt yacutter revenue collection figures ….rise workers rise coz zanu pf inoda kudzvinyirira worker aripasi agara achipihwa shoma ivo mabosses aya they will continue looting……..remember amabank loans etc heartless mps nxaaaa

    1. revenue collector

      on the issue of tax, gvt will get a dividend for money saved, if expensed then VAT will be waiting so no loss to the tax collector.

  30. well done Minister.
    I urge you to urgently audit polytechnics and colleges especially Harare polytechnic.Principals are living paradise lives while lecturers are taking home plus or minus four hundred dolars per month.They giv themselves large perks of allowances that are not taxed thus fleecing government.

  31. Masiyiwa’s dream crumbles”. Isaiah 8:10 Devise your strategy, but it will be thwarted; propose your plan, but it will not stand, for God is with us. Numbers 23:8, 21, 23 How can I curse whom the Lord had not cursed? How can l denounce those whom the Lord has not denounced? 21 No misfortune is seen in Jacob, no misery observed in Israel. 23 There is no divination against Jacob, no evil omens against Israel.It will now be said of Jacob and of Israel,”See what the Lord has done!”
    Edited ·

  32. Bt have you put a thought about what happens to the salaries of the professionals who are doing the actual work? Remember this is supposed to cascade down, even though the gap between them and the CEO was ten fold, if their salary is cut from $2000 to $1000, would you expect them to stick around. Funny its the same government that is making so much noise about brain drain. Seems you want to pull everyone down to PDL and trust me the liquid crunch will worsen, with less money circulating from these professional workers ( i am not talking about CEOs)

    And for ZCTU to celebrate blindly without thinking of the effects on their constituents is plain stupidity.

    Sadly when elephants fight its the grass that suffers.

    1. Ndezvako izvo. Let them go

  33. Zimbabwe will only be drained of insensitive criminal brains.

  34. What brain drain ? kupi kwavanoenda kwavanonotambira mazimari akadaro.

  35. This is Chinamasa you are dealing with, what he says goes.Ndichandagwinyira mungapopote kana kuwomba seshumba, muchanyarara chete. Dube kana Pasi vakaenda inganzi brain drain pakayi.

  36. with an ever increasing number of graduates in the country, who cares for a few greedy thugs to leave……. endai

  37. These chefs are political appointees who owe their promotion to ZPF. Kkkkkkkk. Greener pastures ekupi? Besides the huge salaries, they are all beneficiaries of the land reform, farm mechanisation etc. Their hands are also dirty and the CIO has a dossier of everyone of them and will be happy to use them. Surely how can the CEO earn more than 20 times the salary of a technician? My only worry is that this might just be a bark without a bite meant to appease the povo.

  38. Hakuna kwavanoenda. Were the salaries approved by ZPF? If not let the go and hang. $6000-00 translate to +- R60 000 which is a lot of money.

  39. brain drain? to hell with that, let them liv the country if they cant face salary cuts, zimbabwe will never run out of skilled labour
    nice move minister we salute that!!

  40. hahahahahahahahahahahahahahahahahahaha……………………………. they can go ad look for greener pastures elsewhere but at will be a great advantage to us the youth because our brothers and sisters who are sitting on their degrees as they have no jobs will be glad to fill in the positions which have been left but these greedy old people with big stomach and they would be glad to get that $6000. these greedy grandfathers are the ones who are destroying our economy. they want to improve their selves them to improve the country. living in expensive house yet others are living under bridges. some workers have not been paid for over 8months, how do they expect them to go to work….. ALL I CAN SAY IS THAT MINISTER CHINAMASA IS BRING CHANGE TO THE COUNTRY AND HIS DOING A GREAT JOB. WHAT IS LEFT IS TO SERVE JUSTICE AND ARREST THESE CORRUPT CEOs AND SEIZE THEIR ASSETS AND SALE THEM SO THAT THE MONEY CAN BE OF BENEFIT TO THE COUNTRY AS THEY SAY A LITTLE THAT YOU HAVE GOES A LONG WAY………

  41. This was long over due and they didn’t see it coming. I don’t think these people did a salary survey ,also evaluating what the production level of their organizations versus their salaries. What they were doing was day light robbery. It’s pay back down. It’s hard to resist change and let them be warned ,there is need for them to adjust or they will be left behind.

  42. come on throw the criminals down drain to prison ,its no brain drain instead rubbish into the pit ,they have been mocking vending graduates, its their turn now and forever . The real brain drained quality will come home we ha peaceful country being run down by hyena ceos . Our graduate children are scavengers in neighboring countries , our textile industry has collapsed because the very high earning people ship in bales of second hand clothes

  43. tinovanyengererei ngavaende kana vachiona kuti 6000 ishoma. Zim ingatambudzwa netwuvanhu tushoma utwu nyika izere magraduates kudai. Cuthbert akadzidzei chisina kudzidzwa nevamwe. Asi maCEO akaitira madegree kuPluto? If on earth them vakatiza tinotora vamwe. in fact ngavaendeswe kuCHIKURUBI manhi mbavha idzi.

  44. Tawa unedzungu rekuda kuzivisa manhingi iwe usingazive, tanga waziva dont jus base yo arguments on speculation, unorasika hama ukamhanyira kumedza kutsenga kuchada, pause first then reflect wat did u do kuchikoro @ higher level.usamhanya bro this myt be a good move but dont be conclusive pa speculation yako.got it bro

  45. I love the herald for its new found stance against corruption from any place high or low sacred or otherwise. Keep it up for the good of the country. If this government adopts the vision of jonathan moyo and fights corruption in all its forms come 2018 zanu pf will not struggle it will be a stroll in the park.

  46. There will not be any brain drain. The best is to play guerilla warfare on these guys the moment we get wind that they are contemplating suing for obscene salaries we arrest them on many charges we have ignored like abuse of office, tax evasion, incompetence, diversion of funds and many more, send them to jail and employ better people at that salary, and there are many professionals out there who can accept even 3000 for the same job.

  47. Hanya nani zvidhoma zvekwa chivi ngava indee kuma greener pasture kwacho tione kuti vaoita humbavha hwavanga vachiita mune chere?

  48. Ngavaende!!! Hanywa nani, chidhoma chekwa Chivi! Kkkkk……

  49. they should go find a planet that can pay them that kinda of monies

  50. Chenjerai Hove

    There is absolutely no evidence that those CEO’s have any brains. All those government and municipal institutions they head are collapsing and are being subsidized by government every year. And the government is always broke. And these guys have no moral conscience to think of the workers who go unpaid for months on end while the CEO’s pay themselves hundreds of thousands of dollars every year. The children of the workers are starving and dropping out of school while the children of the CEO’s are attending schools where they learn more about horse riding, hockey, golf and cricket than mathematics or science or social ethics.

  51. It is good in a negative way that our colonial & Washington Consensus history has finally caught up with us. Somewhere along the line we used to receive balance of payments & budgetary support from the West in order to balance our books. This enabled the public sector to continue to pay wages & salaries beyond the means of state owned enterprises, parastatals & local authorities. The Look East Policy has now helped us to realize the wisdom of living within our means. Unlike the West, our Chinese friends have flatly refused to provide budgetary support to Zimbabwe. Instead, they have reminded us that the economic miracle of the country can only be achieved by the Zimbos themselves. Not by the Chinese, nor the Brits! Not by the Americans, nor the Europeans! How can we industrialize, or be competitive in global markets with this nonsense in the labour market?

  52. Happyson muchechetere i professional wei, cashbert dube has no special qualifications that entitle him to a huge salary all his years where spent at one place because he could not get a good job elsewhere, parastatals should employ on merit not political favours

  53. These people have no professional qualifications at all. A few of them have shallow deplommas. They got those positions through political connections. Therefore havashai basa kunze kwenyika cheteba asi chero muno mu Zimbabwe. Those who boast of their undergraduate degrees from UZ should vacate and go to become toilet cleaners overseas and watch to see lots of unemployed graduates taking over the positions. This is the only way to go.

  54. Let the parasites go for the ‘greener’ pastures. They will not receive these extortionate salaries there.

  55. manga muchirikuda kuba? munembiri yei kutora zvakadaro?muchazviona

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