BY JAMES MUTASA

An independent arbitrator Matthias Ruziwa recently awarded that companies in the Ferro Alloy Industry should pay 7 percent of an employee`s basic wage as housing allowance.

Ruziwa’s award comes after employers and employees in the Ferro Alloy industry failed to agree on housing allowance negotiations with the employer party arguing that the allowance should be determined at the works council while the employees’ party advocated that the industry’s housing allowance should be 25 percent of an employee’s basic salary.

“25 percent of basic salaries in the industry as housing allowance would be acceptable, reasonable and sustainable,” Antony Nyashanu, President of National Union of Metal and Allied Industries in Zimbabwe (NUMAIZ) who represented the employees told Ruziwa.

“Enterprises in the sector without housing allowances are more competitive and healthier than those which are paying the housing allowance which justifies lack of willingness to pay on the part of the new players in the industry,” Nyashanu said.

According to Nyashanu new players in the Ferro Alloy Industry who are reluctant to pay housing allowances to their employees include ACF, Afrochine, Almid, Golden Horizon, Isolmates, Jinyi Enterprises, Jinan, Nelson Holdings, Trove, Welmining and Sperantes Investments.

“These new players in the industry have the highest capacity utilization and do not have underutilised employees. Majority of their employees are bunched in the bottom three NEC grades which makes their labour cost extremely low and this shows that they have the capacity to pay housing allowance,” Nyashanu added.

‘‘Companies such as Maranatha Ferro Chrome, Zimalloys, Oliken and Zimasco,’ went on Nyashanu, ‘who are paying housing allowance are contributing at least 50 percent to medical aid, funeral cover and pension fund, whilst the new players do not have any other benefits or allowances for workers apart from basic salaries.

Mike Dzinoreva the human resources and SHEQ executive at Zimbabwe Alloys International, on behalf of the employers in the ferro alloy sector claimed that employers were of the view that the wages and salaries agreed at the National Employment Council are designed and able to cater for all living expenses including accommodation costs.

‘‘The NEC is currently in the middle of wage negotiations and employers therefore require breathing space to allow the industry to recover while protecting jobs and pay wages consistently. Employers therefore require breathing space to allow the industry to recover while protecting jobs and pay  wages consistently,’’ reasoned Dzinoreva.

In his award Ruziwa wrote that, ‘‘there is need to strike a balance between the human factor and the business, economic and social factors. Although the Respondent pointed out a couple of challenges affecting business, there were no disclosures of incapacity to pay. After having taken into consideration all the facts and evidence submitted by both parties, the tribunal`s award is that housing allowance in the Ferro Alloy industry of Zimbabwe shall be 7 percent of an employee`s basic wage,’ ordered Ruziwa.

Commenting on the arbitral award, Nyashanu had this to say, ‘‘the percentage awarded by the arbitrator is not the best one but it is much better than the September 2012 agreement which empowered the Works Councils to determine the quantum of housing allowances. Because since the inception of that agreement only 4 companies out of the 15 companies operating under the NEC for the Ferro Alloy Industry had managed to pay housing allowances.’’