HomeBusiness Digest30% salary increase for Zesa

30% salary increase for Zesa

Grace Kombora

ZESA Holdings says it will award its employees a salary increment of 30% until government approves a cost-effective tariff structure and the disbursement of funds promised by the Reserve Bank o

f Zimbabwe.

Internal correspondence by Zesa Holdings corporate treasury shows that collective bargaining negotiations held at Pandari Lodge resolved to award a 30% salary increment to all employees in A1-D2 grades from January 1 this year. The salaries were expected to be payable from March.

“The award was made as a temporary relief to cushion the employees against the rising cost of living pending the disbursement of funds from the Reserve Bank of Zimbabwe under Plarp,” said the internal memo.

Plarp is short for the Parastatal and Local Authorities Reorientation Programme launched by the Reserve Bank to help various organisations with financing.

The memo said the decision to award a 30% increment was made “in order to alleviate the plight of workers despite the severe cash-flow constraints Zesa Holdings and its subsidiaries continue to face”.

“Negotiations will resume in the event that a final decision is made by government on the implementation of cost-reflective tariffs or on the disbursement of funds from the Reserve Bank of Zimbabwe.”

The power utility is struggling to meet its salaries bill and other essential payments. The interim relief is expected to be granted at the end of this month.

Meanwhile, Zesa’s collective bargaining negotiations for this year have not begun.

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