BY JAMES MUTASA

An independent arbitrator Rodgers Matsikidze recently awarded a meagre 3% salary increment on existing minimum wage for the lowest paid grade for the National Union of Metal and Allied Industry in Zimbabwe’ Ferro Alloy Sector much to the discontentment of the Union and its members.

According to Matsikidze’s award the two parties were holding opposite and strongly defended positions. NUMAIZ were requesting a 20.48% wage increase, effective from July 1, 2025, to December 31, 2025, which would raise the minimum salary from USD 332.03 to USD 400.01 while the Ferro Alloy Industry Employers Association aka (FAIEA) preferred to maintain the existing wage structure.

Part of Matsikidze award reads, “upon careful examination of the arguments presented by both the employer, the Ferro-Alloy Industry Employers Association (FAIEA), and the employee representatives, it is apparent that the sector is facing pronounced financial difficulties. The employer has contended that a significant wage increase would be disproportionate and unsustainable in view of the prevailing economic challenges. In contrast, the employees have argued for an upward adjustment of their wages, emphasizing the need for compensation to keep pace with inflation and to ensure that remuneration remains fair.

‘‘In reaching this determination,’ Matsikidze went on, ‘the arbitrator has weighed several key facts and arguments advanced by both parties.’’

In the arbitration, NUMAIZ which was represented by is 2nd Deputy General Secretary James Nesvinga had argued that, even with the proposed increase, their sector’s minimum wage would still lag behind those in comparable sectors as of the previous year. Many other sectors have doubled or tripled their minimum wages since January 2024, leading to a widening wage gap. The employees stress that this modest increase is essential for beginning to close the gap, as their members have been underpaid for an extended period from June 2024 to April 2025, with only a marginal increase for May and June 2025.

Nesvinga further highlighted to Matsikidze that the financial hardships endured by employees, particularly during critical months such as April and September 2025, when back-to-school expenses forced many into debt and many employees are still to recover from those debts.

Nesvinga also pointed out that an increase in minimum wages was expected in January 2025, but it did not materialize until May, and even then, the increase was minimal.

But Mike Dzinoreva who represented FAIEA together with Itai Dzinoreva and Fungai Manyau maintained that wage negotiations should be based on economic capacity. Where credible evidence shows that wage increases would threaten enterprise viability, the arbitrator is urged to respond sympathetically. FAIEA proposes maintaining current wages until clear improvements are seen in operating conditions—such as reduced electricity tariffs, higher capacity utilisation, commodity price recovery, or successful solar projects and tariff relief. Temporary non-wage measures may be considered where feasible, given the widespread financial distress among members.

‘‘My award is as follows award 3% on existing minimum wage for the lowest paid grade which is at USD332.03. The existing differentials between grades will be retained, and the established payment structure comprising 80% in US dollars and 20% in ZiG will continue to apply. The effective date of this wage increment is 01 October 2025.’’ Matsikidze reasoned.