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ZCTU petitions Mnangagwa’s office to stay out of POSB salary feud

By Alois Vinga

THE Zimbabwe Congress of Trade Unions (ZCTU) has petitioned the Office of the President and Cabinet to stop meddling in salary issues involving workers at the People’s Own Savings Bank (POSB).

The labor organ contends that POSB approached the Office of the President and Cabinet (OPC) seeking relief to avoid the payment of 50% of salaries in US$ agreed at the NEC Banking undertaking.

The union alleged that in response to a directive issued to the Permanent Secretary for Finance and Economic Development, George  Guvamatanga by the Head of the Corporate Governance Unit in the OPC, Allen Choruma refused to allow POSB to pay 50%  of the salaries in US$ but 40% as per government directive under CGU Circular 4/2023.

The ZCTU secretary general Japhet Moyo argued that while the statement by OPC to Guvamatanga may be correct in terms of Public Service Entities, it is a clear violation of rights enshrined in International Instruments which Zimbabwe is party to and has ratified.

“POSB is part of the NEC for the Banking Undertaking and its workers are entitled to benefit from the Collective Bargaining Agreements as signed and Approved by the Minister in terms of NEC Agreements.

“Zimbabwe ratified the ILO Convention 98 on the Right to Organise and Collective Bargaining and thus has an obligation to put laws that align to the Convention 98 which was ratified,” he said.

He urged authorities to note that the prohibition in the CGU Circular 4 /2023 as cited in the government correspondence to Guvamatanga is a clear violation of POSB Workers’ Right to Freedom of Association in terms of ILO Convention 87 which Zimbabwe has also ratified.

Moyo said the two ILO Conventions, C098 and C087 are both Fundamental Core Conventions of the ILO that are legally binding and thus Member States are obliged to enforce whether ratified or not.

The union leader stressed that the NEC for the Banking Undertaking is a legal entity enshrined in the Labour Act Chapter 28.01 and by being party to that NEC POSB is bound by the provisions of the Labor Act.

“It is the ZCTU view that the government should not come up with policies or laws that limit enterprises to pay as such as they are able to. If enterprises are able to pay 100 percent USD, they should be allowed to do so.

“This government’s directive is an assault on collective bargaining in its entirety and this should not be allowed in any sector, be it state entities or private sector,” added Moyo.


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