Roundup: Zimbabwe's civil servants face hardship as payments delayed

Amid a severe liquidity challenge, Zimbabwe's government and civil servants representatives have failed once again this week to agree on pay dates, with another meeting scheduled next Monday to iron out the differences.

At this week's meeting, three government ministers, officials from the Civil Service Commission and central bank governor John Mangudya represented the government. The workers, who were not amused by the government's decision to pay some of this month's salaries as late as mid-July, insist that all salaries should be settled in June, but the hamstrung government says it has no capacity to pay on the desired dates.

"We have come up with certain decisions which we are going to consult our various constituencies (on)," said Minister of Public Service, Labor and Social Welfare Prisca Mupfumira.

"The unions are going to consult their constituencies and we will also be consulting. As such we have resolved to meet on Monday at 4.30 pm to map the way forward together," she told local media.

Workers leader Cecelia Alexander said their constituents wanted their salaries to be paid within the month, adding that the shifting of pay dates was "unacceptable".

Just over a year after the government began moving pay dates for civil servants backwards because of the liquidity challenges, the once unaffected military has now also been caught in the web and soldiers will be paid at the end of the month instead of mid-month as per tradition.

The security sector remains the first to get salaries, albeit now much later than usual.

The government began deferring workers' salaries in March last year with Finance and Economic Development Minister Patrick Chinamasa telling Parliament that the government was running on a cash budget and as such would only pay salaries as and when funds became available.

"I would want to advise the Members of Parliament that we are running on a cash budget and it means that we wait for receipts from ZIMRA (Zimbabwe Revenue Authority) before we can disburse money to meet obligations of government, including salaries of legislators and civil servants. If resources are unable to meet those obligations, then we have to wait," he said then.

But after deferring payment of the salaries by a few days in the past, government this month surprised its employees by announcing that the military and correctional services would get their June salaries on June 27 and rest of the civil servants on July 14.

Those in the education sector will get theirs on July 7 while pensioners will get their dues on July 19.

Meanwhile, tension is rising with one of the teachers' unions reportedly mulling a strike, while many other workers say they will simply stop going to work when their funds run out.

The government last December instructed all state-run hospitals to give medical personnel transport money after they threatened to stop reporting for duty because of delayed salary payments.

A worker in the intelligence services who declined to be named fearing reprisals said the deferment of salaries showed that all was not well in government.

"The bosses are failing and unfortunately nobody wants to own up. When you see them failing to pay the military on time it shows things are not okay," he said.

Samaita, a health worker from the country's biggest referral center Parirenyatwa Hospital, said it would be tough for him to continue coming to work until mid-July when the salaries are due.

"I have to look for money elsewhere, but who has cash these days when the banks are giving out very little. It becomes even more frustrating because apart from the late payments, our salaries remain below the breadline," he said.

He said he did not know how to handle his landlord because he has been staring eviction in the face for a long time now.

"The landlord wants his rent on the first day of the month, but now I must tell him that he has to wait until the 14th. Just imagine!"

A teacher at a primary school in the north-west of the city who identified himself as Tonderai said he would have to deal with his bank concerning overdue accounts. There is nothing I can do, but you know these banks want their money on time and start phoning you a few hours after due date," he said.

Soldiers and prison officers approached by Xinhua refused to comment citing work regulations.

The announcement by the Secretary of Finance and Economic Development Willard Manungo on the deferment of the salaries was sugar-coated with a statement that government had managed to mobilize funds to pay civil servants their December 2015 annual bonuses.

"However, you are aware that against the background of severe revenue underperformance and related cash flow challenges, government has been honoring its monthly wage bill obligations albeit, through the continuous shifting of pay dates," he said.

The government uses more than 80 percent of revenue of labour costs, leaving very little to infrastructural and social development.

The wage bill for the 230,000 civil servants rose from 117 million U.S. dollars per month in 2013 to 155 million dollars.

Revenue collection has been very low of late going down 9.75 percent in the first quarter of the year, with ZIMRA attributing this to poor economic performance, drought, non-compliance by tax payers and corruption.

Tight liquidity conditions prevailing in the economy have further depressed operations of the few companies still operating and led to more company closures and downsizing. Endit