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Business Reporter
BANKS have filed for an interim relief from the Labour Court seeking exemption from paying the 30 percent salary increment awarded to workers by an independent arbitrator last month.
A letter written last month by one of the leading financial institutions to workers revealed the employers had concurrently filed for stay of execution when they contested the award.
The correspondence to non-managerial staff advised that after the collective bargaining dispute the matter was referred to an arbitrator. Employers argued profits reflected in their accounts were only book adjustments from revaluation of assets and not real while workers argued banks’ fortunes had improved significantly.
Employees had demanded a 115 percent increment and a 60 percent hike in housing allowance arguing the cost of living had risen and that management awarded themselves a hefty pay rise. The pay rise would have seen the least paid worker earning a basic salary of US$354 from US$273 and the salary would rise to US$474 including housing allowance the arbitrator had also awarded. The increment offered by employers fell far short of the Consumer Council Zimbabwe determined monthly income of US$509 required by a low- income urban family of six to get by. Bank Employers’ Association of Zimbabwe said the increase based on the salary for the lowest grade of US$273 did not recognise the incremental effect this would have on costs
“Following the award all employers in the banking industry through their association have considered the award to be excessive and therefore not sustainable,” the bank wrote. The employers felt “the increases in both salary and housing allowance are beyond what their budgets can carry”.
The Bank Employers’ Association has thus reportedly appealed for an interim relief until the appeal process, at the Labour Court, has been finalised.

“Accordingly, all members of BEAZ have deferred implementing the award until the appeal is determined by the Labour Court,” the bank wrote.
The association had offered a maximum basic salary increment of 5 percent at the National Employment Council collective bargaining.
The increment meant the least paid worker would earn a basic salary of US$354 from US$273 and the salary would rise to US$474 including housing allowance.
Bank workers had made a climb down to accept a 30 percent pay hike and scored high after the arbitrator, Mr Arthur Manase, awarded them a 60 percent increase on housing allowance.
In reference to employers claims that they were not able to meet workers’ demands, Mr Manase said employers failed to prove their case through financial records as required by section 76 (1) of the Labour Act.