HomeBusiness DigestWorkers seek 30% cost of living adjustment

Workers seek 30% cost of living adjustment

Godfrey Marawanyika

THE Zimbabwe Bankers and Allied Workers Union (Zibawu) is seeking a 30% cost of living adjustments (Cola).

ica, sans-serif”>The union met its members on Tuesday this week and agreed to send a letter to the Bankers Association of Zimbabwe for action today.

It is understood the workers are asking for between a 20-30% adjustment.

Zibawu secretary-general, Colleen Gwiyo, confirmed that they would be sending their proposals to their employers.

“We did meet this week but we cannot say how much we agreed to ask for as this will scuttle our negotiations,” he said.

“We should be sending our formal appeal at the latest by Friday (today),” he said on Tuesday.

Gwiyo said their proposals took into account that they only start negotiating for salary reviews in June.

Reserve Bank governor Gideon Gono last month appealed for restraint in wage negotiations or salary reviews to avoid stoking inflationary pressures.

The central bank and its employees this year agreed on a 95% salary increment in what the governor said was a modest contribution to the need for a social contract.

Gono has since made an appeal that the rest of the financial sector, commerce, industry follow suit.

Zimbabwe’s inflation for January rose to 133,6%, up from 132,7% as of December. The central bank has set a target of between 20-35% inflation by December and a single digit during the first half of next year.

Zimbabwe’s inflation reached 622,8% in January last year.

The Central Statistical Office said the rise in inflation was caused by the increase in food prices, rent and rates, educational fees and communication.

Gono has since blasted several government parastatals whose price increases bear no relation to their cost structures. He said the economy could not continue to be saddled by the unjustified increases by service providers which are exacting a tax on consumers.

The RBZ said that there would be a further tightening of money market liquidity conditions to weed out speculative trading activities and non-productive demand for credit.

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