The Zimbabwe Revenue Authority (ZIMRA) has made an appeal at the Labour Court after it was ordered to increase salaries of its employees by 25 percent backdated to January 1, 2018.
ZIMRA made the appeal under case number LC/H/29/19 after the Zimbabwe Revenue Authority and Allied Workers Union (ZIMRATU) dragged the tax collector to the labour court demanding 30 percent salary readjustment, 36 percent salary adjustment for period January to December 2018 and an additional one room housing allowance.
The tax collector instead offered its employees 5 percent for the period January to June 2018 based on December 2017 salary (basic) with no incremental effect, 15 percent July to December 2018 based on December 2018 basic salary and without the additional one room housing allowance.
However, the Arbitrator Brighton Mudiwa, who heard the salary dispute case between ZIMRATU and ZIMRA on January 8, 2019, dismissed the 30 percent salary readjustment claim and instead ordered the tax collector to award its employees a 25 percent salary increase “effective from the 1st of January 2018 using December 2017 salary”.
“The claim for an additional room to make them 4 rooms is hereby dismissed, the Arbitrator ruled.
The matter was referred for arbitration by labour officer Mr Sabilika after a conciliation hearing between the two parties failed to arrive at a settlement.
The union had argued in its submissions that its members had not had a salary increment for the past three years.
“It was submitted by the claimant that the salaries of the employees has not been adjusted for the past 3 years as the respondent has claimed that the government had frozen the salaries”.
However, ZIMRA in its submissions argued that the economy was to blame for the high cost of living.
“It was the respondent`s submission that there were challenges in the economy and hence awarded 5% once off salary payment for the period January to June and 15% adjustment for the period July to December 2018”.
Following the arbitration award, ZIMRA has since launched an appeal citing that the award will cripple its operations.
“Please note that whilst the Honourable Arbitrator awarded and ordered the employer ZIMRA to pay employees 25% increase in salaries effective from 1st of January 2018 using 2017 salary, ZIMRA has lodged an appeal with the Labour Court in a case with reference number LC/H/29/19,” read a letter dated February 20, 2019 from ZIMRATU to its members.
“ZIMRA is arguing among other reasons that the award is excessive and will cripple its operations and those of the whole economy”.