EMPLOYERS Confederation of Zimbabwe (EMCOZ) has hailed the government for implementing reforms that have significantly reduced annual inflationary rates amid calls to further tighten the policy measures for fuller benefits to cascade down to workers.
Speaking to NewZimbabwe.com on the possibility of matching salaries with current inflationary rates, EMCOZ president Demos Mbauya hinted there was a need to consider the current impact of economic policies and address existing gaps through constructive social dialogue.
“Clearly, the economy is hovering on a recovery trajectory. Since the opening of the Reserve Bank of Zimbabwe (RBZ) foreign currency auction, annual inflation has dropped significantly, from 785,5% in May 2020 to as low as 54,5% in October 2021,” he said.
“As employers, we acknowledge the mismatch between salaries and the Total Consumption Poverty Lines (TCPL). Employers continue to be committed to adjusting salaries in order to cushion the workers from the unbearable inflationary pressures.”
Mbauya, however, called on authorities to exhaust all channels possible to plug residual issues causing inflationary pressures.
“We believe that excessive local currency money supply growth; large payments to farmers in respect of the maize bumper harvest; payments to government contractors as investment in infrastructure intensifies.
“The RBZ foreign currency auction system also needs to be improved and enable it to operate as a proper Dutch Auction System,” he said.
He added there was a need to engage in social dialogue and come up with a feasible strategy of collectivism in proffering lasting solutions bedeviling the economy.