KEY POINTS
- A regional trade union petitions Zimbabwe’s Finance Minister, Mthuli Ncube, over the unilateral devaluation of the Zimbabwean dollar (ZWL).
- The union expresses concerns about the impact of the currency devaluation on workers and regional trade.
- The petition demands immediate dialogue to address the economic challenges posed by the devaluation.
A regional trade union has lodged a formal complaint to Zimbabwe’s Finance Minister Mthuli Ncube over the recent unilateral devaluation of the Zimbabwean dollar (ZWL).
The union said it has many worries about the adverse effects that this abrupt devaluation is causing to workers, domestic industries, and the relations between regions.
Fear for the devaluation of currency
The union that comprises of workers from different sectors in the Southern African region claims that the devaluation of the Zimbabwean dollar has greatly reduced wages and citizens’ purchasing power.
This, they say, has led to worsening of the plight of workers who are now finding it hard to feed their families due to high inflation rates.
As indicated by the decision to devalue the ZWL, the prices of the basic necessities have soared, thus leading to employee real wage reductions across the country.
In its petition, the union has pointed out that the workers who are being affected most are those earning low wages, which is due to the current economic downturn.
New Zimbabwe has quoted the union as saying that it wants the government to reverse the devaluation decision immediately, and engage all stakeholders including labour and business to find a solution for the current situation that will not worsen the situation for workers.
Impact on regional trade
Besides the domestic problems, the trade union also had concerns with the impact of the currency devaluation on the neighboring countries trade.
Zimbabwe is an important trading partner in Southern Africa and the recent change in its currency has had a destabilizing effect on trade relations and uncertainty for those trading partners that depend on Zimbabwe’s exports.
They say if corrective measures are not taken this situation will have significant impacts on the regional trading partners and fears that it could slow down the existing international trade.
The union calls for the formulation of economic policies that will foster stability and guard workers throughout the region.
Call for dialogue and reform
In the petition, the union wants the government to sit down and discuss the economic problems that have arisen from the devaluation of the currency. They are calling on the Finance Minister Mthuli Ncube to look for other policies that would help to stabilize the Zimbabwean dollar and ease the burden on workers.
The trade union also feels that the solution to the economic problem requires cooperation between the labor unions, the business people and the government.
The petition seeks legal change measures for the reconstruction of parallel market confidence and for the conservation of workers’ income in ZWL.
Hope for economic stability
The present economic problems are still critical but the petition represents a general desire that if people talk and change is made, Zimbabwe will be better economically in the future.
With reference to the pronouncement of the union and by responding ending policies that can address the economic development and needs of the workers, the government has the capacity to set ground for a stronger economy and society.
