Bank Workers Mull Industrial Action Over USD Salary Component

Bank workers are considering industrial action following the recent denial by their employers to pay part of their salaries in US dollars.

The Zimbabwe Banks and Allied Workers Union (ZIBAWU) believes banks have the capacity to pay their workers in foreign currency after the Reserve Bank of Zimbabwe’s (RBZ) Mid-Term Monetary Policy Statement revealed that the banking sector’s profitability increased 12-fold during the first half of 2022. The MPS said:

The banking sector recorded unaudited aggregate profits of ZW$181.25 billion for the half-year ended 30 June 2022, a 12-fold increase from aggregate profits of ZW$15.09 billion reported in the corresponding period in 2021.

Speaking to NewZimbabwe.com on Monday, ZIBAWU secretary general, Peter Mutasa, said there is no justification for the banking sector to fail to pay USD salaries considering that a “broke” government is managing to pay part of civil servants’ salaries in US dollars. Said Mutasa:

Employers are refusing to peg salaries in US$ and also refusing to pay part of the salaries in US dollars.

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This is despite the fact that all bank charges and fees are pegged on the US$ and move with the exchange rate.

On our part, we have a clear mandate from the workers that salaries in the sector must be based on US$ and part of it be paid in US$.

Our understanding is that if a broke employer like the government can stretch out and pay in foreign currency, what justification do profiteering banks have to decline the proposals?

Mutasa said employees in the sector have settled for US$636 with an option to pay 50% in US$ and another portion in Zimbabwe dollars.

But the employers want to pay ZW$295,000 wholly paid in local currency, a development that has pushed the workers to consider picketing. Said Mutasa:

We have started our consultations, but it is clear we are going to mount serious countrywide pickets and other collective actions permissible by law.

Currently, the lowest-paid employee in the banking sector is earning ZW$220,000 all-inclusive.