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TNF partners must not agree on poverty datum line based on false assumption - ZCTU

by Stephen Jakes
23 Mar 2020 at 07:26hrs | Views
Zimbabwe Congress of Trade Unions Secretary General Japhet Moyo has warned the Tripatrite Negotiation Forum (TNF) members not to agree on Poverty Datum Line (PDL) based pay which is based on false assumptions.

In a statement, Moyo said the biggest crime social partners at TNF should avoid is to agree with the current PDL that is based on false assumptions.

"These following are the few assumptions that have distorted the shopping basket that Consumer Council of Zimbabwe (CCZ) uses for computation," he said.

"According to the CCZ a lodging room a month cost 160rtgs.This is not correct because in reality it is 450rtgs a month. Transport to most high density suburbs according to CCZ is $2 (Zupco). But on the ground not everyone uses Zupco and it is not readily available. Probably actual transport cost is between $18-25."

He said what is the price of meal meal at TM or OK stores(that is not available) as compared with the actual costs in the black market where everyone buys?

"These few examples reveal the shortcomings with the current CCZ and Zimstat figures in coming up with the current PDL. Organized labour should therefore insist on the August 2018 PDL of +US$595 per month when goods and services were readily available with a stable currency," Moyo said.

"If business proposes to pay a percentage of PDL as an immediate relief to restore the purchasing power of workers then the figures that they are proposing should be indexed to the interbank exchange rate just like the way they determine the costs of their goods and services."

Source - Byo24News