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between employers and employees showing fundamental differences in how salaries should be calculated.
Workers and unions stress the purchasing power of salaries, while employers tend to stress the affordability of salaries and percentage of labour costs in final products.

Both parties agree that Zimbabwean salaries tend to be higher than most in the region outside South Africa. But unions and workers, backed by independent figures, note that prices of basic foods and essential services also tend to be higher than regional norms; employers, backed by economists, note that Zimbabwe cannot price itself out of its markets by paying significantly over the odds.

In early 2009, when Zimbabwe switched currencies, wa-ges tended to be very low.
Most industries have seen wages rise fairly rapidly up to the end of last year, but with little growth this year.
Employers suggest they have now stabilised at affordable levels while workers see wage growth as necessary.

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A recent survey by Industrial Psychology Consultants, a Harare-based firm, found that hardly anyone was earning less than US$200 a month.
“When looking at the total monthly cash received by the employee, less than 1 percent of the employees earn below US$200 per month. Less than 15 percent of the employees earn below US$500. Over 58 percent of the employees earn above US$1 000 per month, 15.5 percent of the employees earn over US$3 000 per month in total cash, 7.4 percent of the employees earn over US$5 000 per month. 1.2 percent of the employees earn over US$10 000 per month,” said its report.

The same report suggested Zimbabwe was in danger of pricing itself out of regional markets and suggested strongly that pay rises should be tied to productivity gains, with employers committed to increases commensurate with these gains and workers agreeing to press for increases only if justified by gains.

Labour analysts, while accepting that salaries in nominal terms, are higher than regional averages look at what these salaries buy and find their purchasing power is less than book figures would suggest.
A labour consultant, Mr Nyasha Muchichwa, said Zimbabweans looked like they were highly paid yet prices of goods and services in the country rendered these amounts less useful.

Owing to the prevailing prices and cost of services, employees were justified in demanding more money from their employers.

“In essence, the Zimbabwean salary is low compared to what workers in South Africa, Malawi and Zambia are getting despite the amounts.
“What we need to do is not compare amounts but the cost of services and utilities. Our prices are higher than in all other countries in the region. Zimbabweans are paying more to get services from public utilities and shops, making the seemingly better salaries useless. In other words though we have more in terms of amounts, we are beaten value wise,” he said.

In Malawi, he said, the cost of living was pegged at US$140 and the minimum wage was US$110.
The lowest paid Government worker in SA gets something around 3 600 Rand (US$400). The poverty datum line is 2 000 Rand (US$250). In Zambia the lowest paid worker gets about US$450 against a poverty datum line of about US$500. Different methods are used to calculate the poverty datum line in most countries.

He said it was most unfortunate that people were not getting value for the money in Zimbabwe.
The minimum government wage in Zimbabwe is around US$200, while the poverty datum line is US$560.

Consumer Council of Zimbabwe chairperson, Mrs Rosemary Siyachitema, concurred with Mr Muchichwa, saying costing of utilities justified salary demands.
“Our people’s salaries are not living wages because they cannot cover for our service needs. When you factor in the cost of services such as water, schools and medicals, you will see that the salaries fall far short of workers’ needs.

“We may say ordinary school fees is charged at US$30 a term but the various levies that are added to fees brings it to over US$150, which is the minimum wage. Factor in Zesa, water and transport, the worker has to borrow to cover the monthly requirements.”

She said such services were consuming the bulk of worker earnings, something that made the environment different from other countries in the region.
Zimbabwe Congress of Trade Unions president, Mr Lovemore Matombo, said it was unfair that employers wanted to rush to compare figures with the region to deny increments when they were sure that workers paid more than anyone in the region for the services.

“We have problems with arguments that portray Zimbabwean workers as getting more because it fails to embrace the prevailing economic and social environment.
“Prices of services and commodities determine the living wage. Our prices for utilities and goods are higher than what is prevailing in the region hence the need for higher salaries.

“We need to work together as labour, government and employers to examine the nature of our business otherwise we continue to seek salary increments,” he said.
National Incomes and Pricing Commission, in a statement this week, said there was no uniform pricing of services and goods making it difficult to peg wages.

A survey of Harare and its surroundings revealed that most products were cheaper in the capital compared to other towns and service centres.
It also revealed that prices of basic commodities were slightly higher than those found in the region.

Most basic goods were cheaper in Zambia, but the same price or slightly higher in Namibia, although maize meal was significantly cheaper in Namibia.
Efforts to get a comment from employer representatives were fruitless yesterday.

In the study by Industrial Psychology Consultants (Pvt) Ltd, Mr Memory Nguwi, a managing consultant of the firm, urged employers and worker representatives to exercise caution when making or negotiating for salary adjustments.

“Our analysis of the salaries presented in this report indicates that most of the companies paying very well are doing well. As it is now, the average minimum wage of USD189 is already too high compared to regional economies.

“The issue of managing, tracking and rewarding performance cannot be overemphasised. Without a dramatic change in the mindset of employees and employers, many people will continue losing their jobs as companies shed off staff in order to contain costs,” Mr Nguwi noted in the report.

The report urged labour to understand that attracting skills would be impossible if they are not paid salaries that are comparable to regional and to some extend international markets.
It said pegging salaries to the PDL would be suicidal, as paying salaries beyond a company means was a sure way to bankruptcy.
“The truth on the ground is that while the lower level salaries are low compared to the general cost of living, generally salaries are too high when compared to productivity levels,” the report noted.