BY JAMES MUTASA

Lawrence Gabilo, an independent arbitrator, recently awarded 7.7 % salary increment for the period April – June 2024 to the Electronics industry.

“The tribunal has noted that the union is demanding 54% increase to bring minimum of A1 to 400.00 United States dollars with effect from 1^st April 2024 to 30^th June 2024. The employer on the other hand is proposing to remain at US$260.00 for A1 effective 1^st April 2024 up to 31^st December 2024. The tribunal has noted that the parties are two worlds apart leaving no room to compromise,” reads part of Gabilo’ award.

According to Henry Tarumbira Genereal Secretary of National Union of Metal and Allied Industries in Zimbabwe (NUMAIZ), their affiliate in the electronics industry had implored that the minimum salary be increased by 54% making a minimum of US$400 payable as 70% in American dollar with remaining 30% paid using the local currency for the period of 3 months April 2024 to June 2024.

“The Employers Association argued that the economy be given time to perform under the new currency advocating that salaries should remain as they are until negotiation in January 2025,” Tarumbira told The Worker.

‘The employers,’ Tarumbira added, ‘preferred to maintain the current payment structure of a minimum salary of USD260 until 31^st of December 2024 divided as 60% paid as US$ and 40% paid as ZIG.’

The diversity of minds between employees and the Employers Association resulted in the parties failing to agree and decided to refer the matter for voluntary arbitration and honorable Gabilo was seized with the matter.

In his award Gabilo stated that, “the tribunal is of the view that it is too early to pin our hopes on the ZIG currency in providing relief to companies and employees. It is the tribunal view that ZIG currency is not showing any signs of improving cash problems facing business and employees. It is against this background that the tribunal will settle for three month duration of wage review 1^st of April to 30^th June in order to allow the economy to stabilize and gain confidence and subsequently do away with frequency wage reviews and adopt long term views. In coming up with the award the tribunal has seriously considered parties evidence and arguments and weighed the serious and gravity of parties’ position and reasoned that a small increase is needed to cushion employees against the current hash economic environment prevailing in the country. In view of the foregoing consideration have decide to award 7.7% on NEC minimum wage for the industry for the duration of three months April to June,’ blended as 70% USD and 30% ZIG. Employers who are able to pay more than the gazetted minimum or to pay exclusively in united states dollars be encouraged to do so,” said the arbitrator.

“As NUMAIZ we grudgingly accept Gabilo’s ruling as we focus on another insurmountable task of fighting for our employees’ back pays because the ruling is three months behind,” Tarumbira said.