News / National
ZCTU wants salaries of CEOs to be made public
04 Nov 2011 at 06:56hrs | Views
On Friday state media reported that ZCTU (Zimbabwe Congress of Trade Unions) wants to narrow the gap between salaries earned by the top 100 people in business and minimum wages for their sectors.
ZCTU national organiser Mr Michael Kandukutu on Wednesday said the unions would continue campaigning vigorously for salaries of CEOs to be made public.
He said the umbrella labour representative body had carried out a survey through the Labour, Economic Development Research Institute of Zimbabwe.
According to the research, the biggest disparities are in the hospitality and parastatal sectors where a handful of CEOs are earning gross salaries of US$11 540 against the US$154 taken home by the lowest-paid worker.
However, up to half of the executives' salaries is chewed up by tax.
Although the top rate of tax is 35 percent, Aids levy and taxes on perks, such as a company car, can drop the actual take home pay to well below 65 percent of gross. Those on the minimum wage do not pay taxes.
The gap is almost as wide in other sectors.
Manufacturing sector CEOs of the largest concerns earn an average of US$9 914 against US$278 earned by the lowest-paid worker, while in the banking sector CEOs, and even then only at the top handful of banks, earn up to US$11 837 against the US$474 given to the lowest-paid worker.
Insurance sector CEOs earn an average US$6 429 against the US$256 paid to the lowest-paid worker while telecoms CEOs on average earn US$8 283 against the US$610 paid to workers.
Non Governmental Organisations executives average US$10 306 against US$395 earned by the lowest-paid worker.
Although the research does not include the mining sector, one huge mining concern reportedly pays its CEO US$70 000 a month.
While concurring that CEOs are hit by taxes, ZCTU argues that executives have other rewards that more than make up for whatever the taxman gobbles up.
Vehicle and fuel allowances and fully subsidised education for a limited number of children are some of the perks enjoyed by the high earners, although these benefits are also taxed.
Most of the 100 or so CEOs who would qualify for the salaries included in the survey drive Mercedes Benz cars or upmarket SUVs and most send their children, with employer's help, to trust or top mission schools.
The Employers' Confederation of Zimbabwe would neither confirm nor deny the claims made by ZCTU.
An earlier survey by Industrial Psychology Consultants established that the numbers at the very top and very bottom of the salary ladders are small.
Less than 1 percent of employees earn less than US$200 a month with less than 1,2 in the US$10 000 and above bracket.
This means most workers are grouped together somewhere in the middle.
The same study said over 58 percent of workers earn over US$1 000 a month.
Skilled workers always earn more than unskilled labour. Some lawyers and medical specialists who run their own practices earn more than CEOs.
Skilled workers have a high mobility rate and are often head-hunted by competitors who offer better financial incentives.
Zimbabwe is working to stem and recover from brain drain that has seen many skilled workers leave the country for the region or abroad.
Mr Kandukutu said ZCTU's bone of contention was on collective bargaining.
Employers were saying they do not have money and that the economy is not functioning well, yet they pay executives handsomely.
"The workers know actual production figures and the situation on the ground. We admit that the economy is still recovering, but let's share the cake. A Poverty Datum Line-based salary is reasonable," he said.
Latest figures released this week by the Consumer Council of Zimbabwe place the low-income earner's monthly basket for a family of six at US$540,80.
However, economic analysts describe such a move as suicidal.
IPC managing consultant Mr Memory Nguwi is on record as saying that if companies pay salaries beyond their means, they will go bankrupt.
Many urban local authorities, including the Harare Municipality, are constantly under fire for failing in their core business of delivering services to ratepayers while spending most of their incomes on salaries.
If they were business entities whose existence depended on viable production, they would all have folded by now.
ZCTU national organiser Mr Michael Kandukutu on Wednesday said the unions would continue campaigning vigorously for salaries of CEOs to be made public.
He said the umbrella labour representative body had carried out a survey through the Labour, Economic Development Research Institute of Zimbabwe.
According to the research, the biggest disparities are in the hospitality and parastatal sectors where a handful of CEOs are earning gross salaries of US$11 540 against the US$154 taken home by the lowest-paid worker.
However, up to half of the executives' salaries is chewed up by tax.
Although the top rate of tax is 35 percent, Aids levy and taxes on perks, such as a company car, can drop the actual take home pay to well below 65 percent of gross. Those on the minimum wage do not pay taxes.
The gap is almost as wide in other sectors.
Manufacturing sector CEOs of the largest concerns earn an average of US$9 914 against US$278 earned by the lowest-paid worker, while in the banking sector CEOs, and even then only at the top handful of banks, earn up to US$11 837 against the US$474 given to the lowest-paid worker.
Insurance sector CEOs earn an average US$6 429 against the US$256 paid to the lowest-paid worker while telecoms CEOs on average earn US$8 283 against the US$610 paid to workers.
Non Governmental Organisations executives average US$10 306 against US$395 earned by the lowest-paid worker.
Although the research does not include the mining sector, one huge mining concern reportedly pays its CEO US$70 000 a month.
While concurring that CEOs are hit by taxes, ZCTU argues that executives have other rewards that more than make up for whatever the taxman gobbles up.
Vehicle and fuel allowances and fully subsidised education for a limited number of children are some of the perks enjoyed by the high earners, although these benefits are also taxed.
Most of the 100 or so CEOs who would qualify for the salaries included in the survey drive Mercedes Benz cars or upmarket SUVs and most send their children, with employer's help, to trust or top mission schools.
The Employers' Confederation of Zimbabwe would neither confirm nor deny the claims made by ZCTU.
An earlier survey by Industrial Psychology Consultants established that the numbers at the very top and very bottom of the salary ladders are small.
Less than 1 percent of employees earn less than US$200 a month with less than 1,2 in the US$10 000 and above bracket.
This means most workers are grouped together somewhere in the middle.
The same study said over 58 percent of workers earn over US$1 000 a month.
Skilled workers always earn more than unskilled labour. Some lawyers and medical specialists who run their own practices earn more than CEOs.
Skilled workers have a high mobility rate and are often head-hunted by competitors who offer better financial incentives.
Zimbabwe is working to stem and recover from brain drain that has seen many skilled workers leave the country for the region or abroad.
Mr Kandukutu said ZCTU's bone of contention was on collective bargaining.
Employers were saying they do not have money and that the economy is not functioning well, yet they pay executives handsomely.
"The workers know actual production figures and the situation on the ground. We admit that the economy is still recovering, but let's share the cake. A Poverty Datum Line-based salary is reasonable," he said.
Latest figures released this week by the Consumer Council of Zimbabwe place the low-income earner's monthly basket for a family of six at US$540,80.
However, economic analysts describe such a move as suicidal.
IPC managing consultant Mr Memory Nguwi is on record as saying that if companies pay salaries beyond their means, they will go bankrupt.
Many urban local authorities, including the Harare Municipality, are constantly under fire for failing in their core business of delivering services to ratepayers while spending most of their incomes on salaries.
If they were business entities whose existence depended on viable production, they would all have folded by now.
Source - TH
