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2 July, 2011The twenty percent wage increase that has been awarded to workers in the engineering, iron and steel industry has been welcomed with mixed feelings. Some union members think the twenty percent is a job well done as it meet the mandate given to the National Engineering Workers Union (NEWU), that the negotiators may not accept anything less than a twenty percent increase. For others, a much higher increase was needed as the new wage minimum still means that workers of the lowest grade get half of what is required to earn at the level of the poverty datum line.
Zimbabwe: The poverty datum line, a figure calculated by the Zimbabwe Consumer Council was a key argument in the demand for a 100 percent wage increase that NEWU took to the negotiating table early this year. The poverty datum line has always been used as the basis for negotiations as it assists in deciding how much a person needs in order to sustain a reasonable livelihood. The poverty datum line is at US$520, whilst workers in the lowest pay grades in the engineering sector earn only US$200 a month. Whilst the 100 percent demand may seem unreasonably high, the union has an obligation to fight for workers to earn a living wage.
The employer body, the Engineering, Iron Steel Association of Zimbabwe (EISAZ) offered only a five percent increase at the National Employment Council (NEC) negotiations for the engineering sector, which was unacceptable to NEWU. As both parties failed to agree on the percentage increment, the matter was referred to the Ministry of Labour for conciliation. But on 5 April 2011 a certificate of no settlement was issued, after parties failed again to reach an agreement. However, at conciliation the parties agreed to refer the matter for voluntary arbitration.
At arbitration, EISAZ argued that employers were struggling to meet current wage levels, indicated by retrenchments in the sector as well as the high number of employers that had applied to the NEC for exemption on paying the minimum wage in the preceding year. NEWU countered this argument by providing evidence that the sector is performing well, based on figures of the Second Quarter 2010 Treasury Bulletin, that shows the metals and metal products sector had the highest capacity utilization of 60%. The union also argued that employers had a responsibility to workers, who have a right to earn more than poverty wages.
On 22 June 2011, the arbitrator finally handed down an award of twenty percent with effect from 1 March 2011 to 28 February 2012, saying this was a reasonable increment under the circumstances.
Whilst the twenty percent increase is far better than the five percent offered by employers, NEWU remains committed to fighting for a living wage. Commenting on the award, General Secretary Japhet Moyo said, "Whatever the arbitrator may have considered, the award falls far short of our expectations considering that the poverty datum line is at US$502. It is our view that the organization has to look at other non monitory benefits such housing and transport to compensate the salaries".
Article based on a report by Miriam Chipunza, NEWU.