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Communications body accuses Econet, Telecel of ringing false alarm bells

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THE Communication and Allied Services Workers’ Union of Zimbabwe (Caswuz) has accused Econet Wireless Zimbabwe and Telecel Zimbabwe of creating a false impression of a sudden drop in business to justify their recent salary cuts.

THE Communication and Allied Services Workers’ Union of Zimbabwe (Caswuz) has accused Econet Wireless Zimbabwe and Telecel Zimbabwe of creating a false impression of a sudden drop in business to justify their recent salary cuts.

BY NQOBILE BHEBHE

In a statement, the association said the 20% and 35% salary cuts proposed by Telecel and Econet Wireless respectively recently were unjustified.

Econet Wireless recently reported a 41% decline in after-tax profit for the year ended February 2015, blaming a government-decreed voice tariff cut as well as taxes on airtime and mobile handsets as contributing to a decline in the company’s revenue inflows.

The company pleaded with its local and foreign suppliers to reciprocate the move and slash their charges by at least 15%.

However, Caswuz said the move by the two firms was meant to incite other players in the telecommunications sector to also slash workers’ salaries.

“Caswuz would like to register its grave concern on the effect that Telecel and Econet companies have decided to cut salaries of staff by 20%,” the association said.

“These companies desire to appear to be dragging the rest of companies to follow suit, thereby creating a false impression of an economic collapse. Although the economy is not performing well, these blue-chip companies do not suffer in the same way as non-telecommunications firms,” the association said.

“Any telecommunications company in the world would be the last to suffer at the magnitude that allows them to cut salaries. Cutting salaries is illegal and this is why the Labour Act Chapter 28:01 provides the need for companies to negotiate with unions in the sector,” the union added.

The local telecommunications sector has rapidly grown since 2009, with the mobile phone penetration rate rising from less than 30% to more than 106%.