Beatific Gumbwanda
CHIREDZI – Tongaat Hulett
Zimbabwe (THZ) employees’ faces beamed bright ahead of the Heroes’ and Defence
Forces’ holiday after their employer granted them an allowance of about 200
percent to cushion them against the rising cost of living.
Zimbabwe (THZ) employees’ faces beamed bright ahead of the Heroes’ and Defence
Forces’ holiday after their employer granted them an allowance of about 200
percent to cushion them against the rising cost of living.
With about 18 000 workers,
THZ is one of the largest single employers in the country, and it has been
praised for heeding President Emmerson Mnangagwa’s call for employers to
cushion their workers in light of the increasing cost of living which has seen
salaries getting eroded by inflation.
THZ is one of the largest single employers in the country, and it has been
praised for heeding President Emmerson Mnangagwa’s call for employers to
cushion their workers in light of the increasing cost of living which has seen
salaries getting eroded by inflation.
Employees of the sugar
company now earn more than ordinary civil servants, who were, a few weeks ago
accorded a $97 cushion each, meaning there was no much difference made.
company now earn more than ordinary civil servants, who were, a few weeks ago
accorded a $97 cushion each, meaning there was no much difference made.
In a memo, THZ acting CEO
and managing director, Aiden Mhere said the company had given its employees
what he termed a Cost Of Living Allowance (COLAR) for the month of August.
and managing director, Aiden Mhere said the company had given its employees
what he termed a Cost Of Living Allowance (COLAR) for the month of August.
“In order to further
cushion employees from the impact of the ongoing economic challenges, I am
pleased to advise that the company has increased the non-pensionable cost of
living allowances granted in June 2019 to all current employees with effect
from August 01, 2019. The new allowances are being granted at the company’s
sole discretion on a without prejudice basis,” reads the memo.
cushion employees from the impact of the ongoing economic challenges, I am
pleased to advise that the company has increased the non-pensionable cost of
living allowances granted in June 2019 to all current employees with effect
from August 01, 2019. The new allowances are being granted at the company’s
sole discretion on a without prejudice basis,” reads the memo.
Mhere also highlights that
workers in grades A and B will be cushioned with 196 percent while grade C
lower and D2 lower will enjoy a 191 percent allowance. Those in D3 and above
bands will get a 175 percent cost of living allowance.
workers in grades A and B will be cushioned with 196 percent while grade C
lower and D2 lower will enjoy a 191 percent allowance. Those in D3 and above
bands will get a 175 percent cost of living allowance.
“The basic salaries for
all A and B employees which became effective on 01 April 2019 will remain
unchanged. The allowance will be paid in accordance with the following:
all A and B employees which became effective on 01 April 2019 will remain
unchanged. The allowance will be paid in accordance with the following:
“(a) the allowance is
being granted at the company’s sole discretion on a without prejudice basis,
(b) The allowance will not become part of the regular basic pay, (c) The
allowance will be paid with effect from 01 August 2019, (d) the allowance will
be included in the August 2019 pay packages and will be taxable in accordance with
existing tax legislation, (e) The allowance will not apply for purposes of
calculating pension contributions, overtime or any other allowance,” the
memo further reads.
being granted at the company’s sole discretion on a without prejudice basis,
(b) The allowance will not become part of the regular basic pay, (c) The
allowance will be paid with effect from 01 August 2019, (d) the allowance will
be included in the August 2019 pay packages and will be taxable in accordance with
existing tax legislation, (e) The allowance will not apply for purposes of
calculating pension contributions, overtime or any other allowance,” the
memo further reads.
Zimbabwe Sugarcane Milling
Industry Workers Unions (ZSMIWU) secretary general Faster Gono welcomed the
move saying it was a pleasing decision since the company was still studying the
union’s paper on proposed wage reviews.
Industry Workers Unions (ZSMIWU) secretary general Faster Gono welcomed the
move saying it was a pleasing decision since the company was still studying the
union’s paper on proposed wage reviews.
“After we pushed our
positional paper, they said they were consulting so we made it clear that it
would be better for the company to cushion the workers and then carry on with
the consultations. We will be pleased if the company speedily finalises the
processes,” said Gono.
positional paper, they said they were consulting so we made it clear that it
would be better for the company to cushion the workers and then carry on with
the consultations. We will be pleased if the company speedily finalises the
processes,” said Gono.
