Civil Servants Meet RBZ Chief • Call Off Planned Strike • Bonus Still Coming • Constant Pay Dates Promised
January 1, 2016
Felex Share Senior Reporter
Zimbabwe Herald
Representatives of civil servants on Wednesday met Reserve Bank of Zimbabwe Governor Dr John Mangudya whom they said gave them a “satisfactory” insight on the state of the economy, which made them rule out a premature strike that was being planned.
Members of the Apex Council, a body that represents all civil servants in salary negotiations, yesterday said Dr Mangudya assured them that the 2015 bonuses would be paid as promised and pay dates would be constant this new year.
This comes as labour lawyers yesterday said the right to strike did not apply to civil servants, adding that Section 65 of Constitution “does not saddle an employer with any legal obligation to pay a striking employee.”
The experts said civil servants were governed by the Public Service Act.
Government is yet to pay some civil servants after shifting their pay dates from December 29 to next Tuesday.
This prompted the unpaid workers, mainly health workers, to threaten a strike beginning today.
Some members of the uniformed forces were paid before Christmas Day, while teachers got their dues on Tuesday, instead of Monday.
Teachers Union of Zimbabwe chief executive, Mr Manuel Nyawo, said following their meeting with Dr Mangudya, they had concluded there was no need for a premature industrial action.
“He (Dr Mangudya) took us through what Government has in its coffers and the reasons for the delays in the payment of salaries,” he said.
“He assured us that bonuses will be paid and that those owed will get their salaries as announced.”
Civil Service Commission regulations call for engagement between Government and civil servants and if no solution is found, an independent arbitrator comes into play.
If the arbitrator’s decision is disputed by the employees, they can give a 14-day strike notice.
Zimbabwe Teachers Association president, Mr Richard Gundane, said the RBZ chief had created space for dialogue.
“Dr Mangudya told us that his door was open for us to have an insight of what is going on with them as bankers of Government,” he said.
“He said it was important that we have an input into the processes that feed into the monetary policy. He said frantic efforts were being made to ensure that commitments are honoured.”
Public Service Association president, Mrs Cecelia Alexander, whose constituency is yet to get paid, said the meeting had given the workers an “in-depth understanding of how the economy is performing.”
“They told us what Government has gone through to make us earn,” she said.
Labour lawyer, Mr Caleb Mucheche, said while Section 65 (3) of the Constitution of Zimbabwe gave employees a right to strike, that privilege could be limited to maintain essential services.
“Section 86 of the Constitution contain a limitation clause, which can also restrict the right to strike,” he said.
“In the case of private sector employees, in terms of Section 104 (1) of the Labour Act, a lawful strike is only permissible to resolve disputes of interest and not disputes of right. Section 3 of the Labour Act provides that the Labour Act does not apply to members of the public service thereby meaning that all restrictions on the right to strike in the Labour Act do not apply to public service employees.”
Some doctors and nurses yesterday threatened to forge ahead with their plan to embark on an illegal strike.
Said Mr Mucheche: “For private sector employees, Section 104 (1) of the Labour Act outlaw a strike in a dispute of right such as this one on nonpayment of salaries. This is not the case with public service employees who directly draw their right to strike from section 65 (3) of the Constitution which makes no distinction between a dispute of right and a dispute of interest when it comes to the right to resort to a collective job action. Under the common law, an employer can lawfully withhold paying employees’ salaries.
“There is a potential grave risk that employees who embark on a strike may lose remuneration for the duration of their strike. A strike is a double edged sword that will result in the employer having a legal right not to pay such striking employee for the period of the strike. It is ironic to strike for non-payment of a salary and then give the employer a legal right not to pay a salary for the period you are on strike.”
Another labour expert, Mr Rodgers Matsikidze said: “Our Constitutions gives one, except the security sector, to strike but because our labour laws are yet to be harmonised, the old provisions of the Labour Act are still applicable. The right to strike is therefore subject to restrictions.
“Normally, the employers use strike as a bargaining weapon because the more effective the strike, the more gains come but they should also note the ‘No work No pay principle’. The employer is not entitled to pay a person who is on strike whether or not the strike is illegal.”
He went on: “The right to strike is part of our law but the dispute of right is supposed to be solved through arbitration or the courts. It is always advisable for social partners to have meetings before the pay day and show each other the finances or bank balances rather than ambushing the workers on the eve of the pay date. This erodes the trust.”
Dr Mangudya was not available for a comment yesterday.
Council, Zimra in Bitter Cash Wrangle
January 1, 2016
Innocent Ruwende Municipal Reporter
Zimbabwe Herald
Harare City Council is embroiled in a bitter wrangle with the Zimbabwe Revenue Authority (Zimra) after the revenue authority demanded an upward review of the subsisting payment plan of $1 million per month following its refusal to waive a 100 percent penalty charge for late payment.
Harare owes Zimra $136 238 792, 91 in penalties, Pay As You Earn (PAYE), Value Added Tax (VAT), presumptive tax and interest accumulated since 2009.
Late payment charges alone account for $103 049 947, 50.
VAT accounts for $20 926 936, 10, presumptive tax $143 125, 93, PAYE $12 118 743,38, penalties $75 785 186, 75 and interest $27 264 800, 75.
The city is now seeking the intervention of the Ministry of Local Government, Public Works and National Housing.
According to recent minutes of the Finance and Development Committee, finance director Mr Justin Mandizha reported that council was not meeting its monthly obligation due to cash flow challenges.
“The monthly payment as per the subsisting payment plan amounted to $1 million per month and Zimra was demanding an upward review to address the ballooning debt.
The underpayment continued to attract interest and penalty charges at the prescribed rate and at 100 percent respectively.
“Council had made an appeal for waiver of the 100 percent penalty charge and this was not granted. Zimra was yet to renew the City of Harare Tax Certificate,” read part of the minutes.
In view of the challenges, council is seeking the intervention of its parent ministry to find common ground between the parties.
Council noted that remittances to Zimra are by way of direct transfers, set offs of amounts owed to council by Government and in some cases garnishee orders.
It also noted that arising from the Government directive to write off all domestic debts accrued to June 30, 2013, an amount of $13,7m was approved for write-off by Zimra against a claim of $21,7 million.
The city collected $138 million from January to September 2015.
Debtors were reported at $394,1 million, while creditors stood at $197,4 million.
Mr Mandizha reported that the prevailing economic challenges had affected most Harare residents and the corresponding revenue inflows.
He also sought council permission to hire 31 vehicles for a period of four months for use in revenue collection after reporting that council’s fleet had outlived its useful economic life and some divisions were struggling to deliver their mandate.
Council granted him the authority.
Harare runs 30 bank accounts• Signatories unknown • Councillors order urgent audit
December 31, 2015
Innocent Ruwende Municipal Reporter
Harare City Council is reportedly running over 30 bank accounts, prompting councillors to order an urgent audit of the accounts and their signatories. Ten of the accounts are reportedly active, while 20 are said to be dormant.
The Urban Council Act is silent on the number of bank accounts local authorities can operate at a time, but financial experts say multiple bank accounts raise suspicion of underhand dealings.
Councillors have asked the city’s audit committee to investigate the bank accounts and their signatories after city officials failed to provide the information upon request by the city fathers.
An audit of a reconciliation of all the city’s bank accounts carried out last year revealed that the city had 35 accounts and that council had not reconciled all of them in three years from 2009 to 2012.
Recent minutes of the Finance and Development Committee show that councillors expressed concern that a report detailing the number of the city’s bank accounts and the signatories had not been submitted.
“During discussion, the committee noted with concern that the finance director was encountering challenges to obtain the requisite information on this matter.
“The acting town clerk (Mrs Josephine Ncube) also highlighted that she had been made aware of the matter and advised that she had called for a meeting where she would meet the finance director and his senior officials to discuss the matter,” read the minutes.
“The committee expressed concern on the development and urged the acting town clerk to take corrective action as a matter of urgency. The committee felt that the matter had to be referred to the audit committee to establish the number of the city’s bank accounts and its (sic) signatories and advise this committee accordingly.”
The committee also referred to its request to be provided with the finance department’s organogram and expressed concern that this had not been submitted.
The committee referred the matter to the Human Resources and General Purposes Committee to consider the matter and advise.
Following discussions, the committee resolved that the matter regarding the number of council bank accounts and the signatories be referred to the Audit Committee to investigate and advise it.
Last year, the then town clerk Dr Tendai Mahachi told the audit committee that despite the city having this huge number of bank accounts, 25 of them were dormant.
During the deliberations, council resolved that the acting finance director ensures the number of operational bank accounts and cash books are reviewed downwards.
It also recommended that bank accounts be reconciled to the cash books on a monthly basis.
Felex Share Senior Reporter
Zimbabwe Herald
Representatives of civil servants on Wednesday met Reserve Bank of Zimbabwe Governor Dr John Mangudya whom they said gave them a “satisfactory” insight on the state of the economy, which made them rule out a premature strike that was being planned.
Members of the Apex Council, a body that represents all civil servants in salary negotiations, yesterday said Dr Mangudya assured them that the 2015 bonuses would be paid as promised and pay dates would be constant this new year.
This comes as labour lawyers yesterday said the right to strike did not apply to civil servants, adding that Section 65 of Constitution “does not saddle an employer with any legal obligation to pay a striking employee.”
The experts said civil servants were governed by the Public Service Act.
Government is yet to pay some civil servants after shifting their pay dates from December 29 to next Tuesday.
This prompted the unpaid workers, mainly health workers, to threaten a strike beginning today.
Some members of the uniformed forces were paid before Christmas Day, while teachers got their dues on Tuesday, instead of Monday.
Teachers Union of Zimbabwe chief executive, Mr Manuel Nyawo, said following their meeting with Dr Mangudya, they had concluded there was no need for a premature industrial action.
“He (Dr Mangudya) took us through what Government has in its coffers and the reasons for the delays in the payment of salaries,” he said.
“He assured us that bonuses will be paid and that those owed will get their salaries as announced.”
Civil Service Commission regulations call for engagement between Government and civil servants and if no solution is found, an independent arbitrator comes into play.
If the arbitrator’s decision is disputed by the employees, they can give a 14-day strike notice.
Zimbabwe Teachers Association president, Mr Richard Gundane, said the RBZ chief had created space for dialogue.
“Dr Mangudya told us that his door was open for us to have an insight of what is going on with them as bankers of Government,” he said.
“He said it was important that we have an input into the processes that feed into the monetary policy. He said frantic efforts were being made to ensure that commitments are honoured.”
Public Service Association president, Mrs Cecelia Alexander, whose constituency is yet to get paid, said the meeting had given the workers an “in-depth understanding of how the economy is performing.”
“They told us what Government has gone through to make us earn,” she said.
Labour lawyer, Mr Caleb Mucheche, said while Section 65 (3) of the Constitution of Zimbabwe gave employees a right to strike, that privilege could be limited to maintain essential services.
“Section 86 of the Constitution contain a limitation clause, which can also restrict the right to strike,” he said.
“In the case of private sector employees, in terms of Section 104 (1) of the Labour Act, a lawful strike is only permissible to resolve disputes of interest and not disputes of right. Section 3 of the Labour Act provides that the Labour Act does not apply to members of the public service thereby meaning that all restrictions on the right to strike in the Labour Act do not apply to public service employees.”
Some doctors and nurses yesterday threatened to forge ahead with their plan to embark on an illegal strike.
Said Mr Mucheche: “For private sector employees, Section 104 (1) of the Labour Act outlaw a strike in a dispute of right such as this one on nonpayment of salaries. This is not the case with public service employees who directly draw their right to strike from section 65 (3) of the Constitution which makes no distinction between a dispute of right and a dispute of interest when it comes to the right to resort to a collective job action. Under the common law, an employer can lawfully withhold paying employees’ salaries.
“There is a potential grave risk that employees who embark on a strike may lose remuneration for the duration of their strike. A strike is a double edged sword that will result in the employer having a legal right not to pay such striking employee for the period of the strike. It is ironic to strike for non-payment of a salary and then give the employer a legal right not to pay a salary for the period you are on strike.”
Another labour expert, Mr Rodgers Matsikidze said: “Our Constitutions gives one, except the security sector, to strike but because our labour laws are yet to be harmonised, the old provisions of the Labour Act are still applicable. The right to strike is therefore subject to restrictions.
“Normally, the employers use strike as a bargaining weapon because the more effective the strike, the more gains come but they should also note the ‘No work No pay principle’. The employer is not entitled to pay a person who is on strike whether or not the strike is illegal.”
He went on: “The right to strike is part of our law but the dispute of right is supposed to be solved through arbitration or the courts. It is always advisable for social partners to have meetings before the pay day and show each other the finances or bank balances rather than ambushing the workers on the eve of the pay date. This erodes the trust.”
Dr Mangudya was not available for a comment yesterday.
Council, Zimra in Bitter Cash Wrangle
January 1, 2016
Innocent Ruwende Municipal Reporter
Zimbabwe Herald
Harare City Council is embroiled in a bitter wrangle with the Zimbabwe Revenue Authority (Zimra) after the revenue authority demanded an upward review of the subsisting payment plan of $1 million per month following its refusal to waive a 100 percent penalty charge for late payment.
Harare owes Zimra $136 238 792, 91 in penalties, Pay As You Earn (PAYE), Value Added Tax (VAT), presumptive tax and interest accumulated since 2009.
Late payment charges alone account for $103 049 947, 50.
VAT accounts for $20 926 936, 10, presumptive tax $143 125, 93, PAYE $12 118 743,38, penalties $75 785 186, 75 and interest $27 264 800, 75.
The city is now seeking the intervention of the Ministry of Local Government, Public Works and National Housing.
According to recent minutes of the Finance and Development Committee, finance director Mr Justin Mandizha reported that council was not meeting its monthly obligation due to cash flow challenges.
“The monthly payment as per the subsisting payment plan amounted to $1 million per month and Zimra was demanding an upward review to address the ballooning debt.
The underpayment continued to attract interest and penalty charges at the prescribed rate and at 100 percent respectively.
“Council had made an appeal for waiver of the 100 percent penalty charge and this was not granted. Zimra was yet to renew the City of Harare Tax Certificate,” read part of the minutes.
In view of the challenges, council is seeking the intervention of its parent ministry to find common ground between the parties.
Council noted that remittances to Zimra are by way of direct transfers, set offs of amounts owed to council by Government and in some cases garnishee orders.
It also noted that arising from the Government directive to write off all domestic debts accrued to June 30, 2013, an amount of $13,7m was approved for write-off by Zimra against a claim of $21,7 million.
The city collected $138 million from January to September 2015.
Debtors were reported at $394,1 million, while creditors stood at $197,4 million.
Mr Mandizha reported that the prevailing economic challenges had affected most Harare residents and the corresponding revenue inflows.
He also sought council permission to hire 31 vehicles for a period of four months for use in revenue collection after reporting that council’s fleet had outlived its useful economic life and some divisions were struggling to deliver their mandate.
Council granted him the authority.
Harare runs 30 bank accounts• Signatories unknown • Councillors order urgent audit
December 31, 2015
Innocent Ruwende Municipal Reporter
Harare City Council is reportedly running over 30 bank accounts, prompting councillors to order an urgent audit of the accounts and their signatories. Ten of the accounts are reportedly active, while 20 are said to be dormant.
The Urban Council Act is silent on the number of bank accounts local authorities can operate at a time, but financial experts say multiple bank accounts raise suspicion of underhand dealings.
Councillors have asked the city’s audit committee to investigate the bank accounts and their signatories after city officials failed to provide the information upon request by the city fathers.
An audit of a reconciliation of all the city’s bank accounts carried out last year revealed that the city had 35 accounts and that council had not reconciled all of them in three years from 2009 to 2012.
Recent minutes of the Finance and Development Committee show that councillors expressed concern that a report detailing the number of the city’s bank accounts and the signatories had not been submitted.
“During discussion, the committee noted with concern that the finance director was encountering challenges to obtain the requisite information on this matter.
“The acting town clerk (Mrs Josephine Ncube) also highlighted that she had been made aware of the matter and advised that she had called for a meeting where she would meet the finance director and his senior officials to discuss the matter,” read the minutes.
“The committee expressed concern on the development and urged the acting town clerk to take corrective action as a matter of urgency. The committee felt that the matter had to be referred to the audit committee to establish the number of the city’s bank accounts and its (sic) signatories and advise this committee accordingly.”
The committee also referred to its request to be provided with the finance department’s organogram and expressed concern that this had not been submitted.
The committee referred the matter to the Human Resources and General Purposes Committee to consider the matter and advise.
Following discussions, the committee resolved that the matter regarding the number of council bank accounts and the signatories be referred to the Audit Committee to investigate and advise it.
Last year, the then town clerk Dr Tendai Mahachi told the audit committee that despite the city having this huge number of bank accounts, 25 of them were dormant.
During the deliberations, council resolved that the acting finance director ensures the number of operational bank accounts and cash books are reviewed downwards.
It also recommended that bank accounts be reconciled to the cash books on a monthly basis.
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