Employers must not cut worker salaries but should, instead, review them upwards despite the ongoing reduction of prices of goods and services, said the Zimbabwe chairperson of the Cabinet taskforce on price monitoring and stabilisation, Obert Mpofu.
Mpofu said the government would assist companies that are facing viability problems soon after the conclusion of the blitz on overcharging businesses, Zimbabwe’s Herald Online said on Friday.
Mpofu, who is the Minister of Industry and International Trade, allayed fears that a reduction of salaries would follow the price blitz.
”We, as the government, will not slash salaries. There is nothing like that. Our idea is to give workers a significant disposable income.”
Workers have been anxious since rumours that salaries would be reduced began doing the rounds.
Two weeks ago, the government directed businesses to freeze prices to June 18 levels.
This came against a background of at times thrice daily price increases by most businesses across the board from manufacturers and retailers to service providers, which had severely eroded workers’ incomes.
Mpofu said Zimbabwe’s detractors were busy spreading rumours that the government would order a cut on salaries.
”It’s being propagated by enemies of the state who don’t want to see positive developments by the government. They are just economic saboteurs bent on frustrating the government’s efforts to restore sanity in the business sector,” he said.
Worker unions from various sectors of the economy are negotiating for wage and salary increases in line with the April poverty datum line of Z$3,5-million.
Mpofu said the government would work closely with firms that complied with the directive to revert to June 18 prices.
Funds to assist the companies were in place, although he could not reveal the exact amount allocated.
The minister appealed to other companies to reduce prices to June 18 levels before crack teams raid them.
Companies that were not complying with the government directive risked losing trading licences as well as being nationalised, he warned.
Cops arrested for looting shops
Meanwhile, four police officers have so far been arrested in Zimbabwe for allegedly looting shops under the guise of enforcing controversial price controls, a newspaper said on Friday.
The arrests come after police on Thursday warned that some criminals and former police officers are also masquerading as price inspectors in a bid to take advantage of this month’ blitz on prices.
”So far, two police from Bulawayo [the second largest city] and two others in Harare have been arrested for corruption while attached to the price-control section, police spokesperson Oliver Mandipaka said.
”We are aware that some bogus elements with the sole objective of looting from retailers are now masquerading as police officers, Mandipaka told the official Herald daily.
For the past week Zimbabwean police have been roaming stores across the country demanding owners and store managers reduce their prices by at least half, to the delight of inflation-weary shoppers.
The blitz has angered the business community, which says it has incurred huge losses and will not be able to restock shop shelves.
So far more than 1 700 shop owners and company officials have been arrested and many of them fined for defying the price cuts or hoarding scarce commodities.
Mandipaka said businesses had the right to demand identification papers from inspectors carrying out raids.
”We urge both retailers and shoppers to report any cases of suspected criminal activity by officers,” he added.
There are witness reports from the border city of Mutare that in some cases police and inspectors have summoned their relatives, friends and colleagues to cherry-pick goods like cement and fuel at knockdown prices.
Meanwhile, police have since Wednesday impounded 100 commuter vehicles in the capital, Harare, and arrested their drivers for defying a state directive to reduce fares, said the Herald.
Transport operators say the fares imposed by the government are not viable given escalating costs of fuel and spares. — Sapa-dpa