15 May 2023
15 May 2023
For immediate release
PRESS RELEASE
SUBJECT: ZCTU POSITION ON GOVERNMENT MEASURES TO STABILISE THE EXCHANGE RATE AND MACROECONOMY
The Zimbabwe Congress of Trade Unions (ZCTU) is deeply disappointed by the measures announced by the Minister of Finance to ostensibly stabilise the exchange rate and macroeconomy. These measures will not improve the welfare of workers and Zimbabweans in general.
The new measures, instead of solving the economic crisis that the country faces, fail to find solutions to the crisis and high price of goods and services amongst a host of issues affecting workers and the general public. Measures such as 100% retention of domestic foreign currency earnings, adoption of all external loans by treasury, enhanced foreign exchange auction system and even lifting of all restrictions on importation of basic goods is a nullity to a worker who is being paid in RTGS.
There is nothing for the working poor who is chocking under the yoke of high prices and low wages. Measures such as gold and digital coins are mere elitist deals to loot from the poor. How many workers can afford to buy the so called gold coins or digital coins?
To date, efforts by authorities to bring the unstable macroeconomic environment under control have not been effective. Most of the measures have been hastily implemented without adequate dialogue and consultations of all key stakeholders and partners. The economic environment continues to be characterised by high levels of volatility as evidenced by the fast-depreciating Zimbabwean dollar as well as the incessant price increases in Zimbabwean dollar.
While the economy has effectively dollarized in terms of expenditures (with more than 70% of total spending being denominated in USD), most workers continue to earn their incomes in Zimbabwean dollars. There has been a massive erosion of real incomes with the workers being disproportionately affected while the proportion of the working poor has increased markedly.
The biggest challenge with reforms in Zimbabwe is that they are being implemented top down and this has plunged the economy into the abysm in the first place, implying the trust and confidence deficit will continue to haunt the process. The populace has been hurt and suffered as a result of the wrong-headed policies that resulted in loss of value of our currency in the past and now, fiscal indiscipline, run- away inflation and corruption.
We reiterate our demand that all workers be paid in USD until such a time the economy stabilizes.
Japhet Moyo
SECRETARY-GENERAL
