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The Zimbabwe Congress of Trade Unions (ZCTU) has criticized the Reserve Bank of Zimbabwe for unilaterally devaluing the Zimbabwean Gold (ZiG) currency without considering its impact on workers and ordinary citizens.
In a statement issued on Tuesday, October 1, ZCTU Acting Secretary General Kudakwashe Munengiwa said the ZiG has been devalued by over 44%.
He said this devaluation has reduced workers’ earnings, leaving them financially vulnerable, especially as many shops charge double prices for ZiG transactions.
Munengiwa condemned the government’s reluctance to engage with workers and businesses through the Tripartite Negotiating Forum (TNF), in violation of Section 13(2) of the Constitution, which mandates the government to involve citizens in development plans that affect them. He added:
<blockquote>
We would like to note that RBZ has been taking people for granted for quite some time now when introducing a new currency.
When it introduced the bond notes in 2016 RBZ claimed that the bond notes were adequately backed by lines of credit from Afreximbank and that the 1:1 exchange rate between the USD and RTGS$ were also backed by adequate lines of credit.
Lately, they also claimed that the ZiG was adequately backed by gold. These all have proved to be false guarantees as the local currency could not hold against the USD and other foreign currencies.
</blockquote>
Munengiwa said the government’s fiscal mismanagement and high inflation have significantly contributed to the devaluation of the ZiG, urging the government to take responsibility for the currency’s decline.
He asserted that workers are now earning in a rapidly depreciating currency that fails to fulfil basic economic functions, adversely affecting their earnings, pensions, and insurance.
Munengiwa urged employers to pay a substantial portion of wages in USD to support workers.
He also called on the government to establish a minimum wage in USD to protect vulnerable workers and ensure fair compensation to combat poverty and reduce inequality, including gender disparities.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The ZCTU is unhappy with the RBZ for reducing the value of the ZiG currency by 44%, making it harder for workers to earn enough money. The government didn't talk to workers first, which is not fair. The RBZ has made false promises about the currency in the past. The government needs to take responsibility for the currency losing value. Workers should be paid in USD to help them. The government should also set a minimum wage in USD to ensure fair pay and reduce poverty.

ZCTU Slams RBZ For Unilateral Devaluation ZiG Currency

The Zimbabwe Congress of Trade Unions (ZCTU) has requested Public Service, Labour and Social Welfare minister Paul Mavima to respond publicly to allegations that he bought a US$350 000 Borrowdale house through the National Social Security Authority (NSSA).
Media reports claim Mavima facilitated the property deal without following due process.
In a statement dated 28 February 2023, ZCTU acting secretary-general Kudakwashe Munengiwa said:
<blockquote>
The Zimbabwe Congress of Trade Unions notes with concern the corruption allegations relating to the purchase of a Borrowdale house being levelled against the Minister of Labour and urge him to come clean.
Mavima is accused of arm-twisting NSSA to buy him a house valued at US$350 000 while promising to pay back later after receiving his US$500 000 housing allowance awarded to Cabinet ministers.
Upon purchase, it is said the house was sold to Mavima before the property could be entered into NSSA books.
We note that funds used to purchase the said property are pensioners’ contributions and investments.
It is, therefore, prudent for the minister as the custodian of those funds to come clean on the matter.
</blockquote>
The ZCTU is concerned that powerful individuals continue to manipulate systems to bleed NSSA while payouts and benefits remained paltry.
Contacted for comment by <a href="https://www.newsday.co.zw/local-news/article/200008483/come-clean-on-us359k-deal-zctu-tells-mavima">NewsDay</a> on Tuesday, Mavima said:
I have no comment. There is a forensic audit underway. It should remain objective and not tainted with comments from the minister.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

ZCTU Demands That Minister Mavima Publicly Responds To US$350k Borrowdale House Allegations

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