adminBrighton Gumbo Business Reporter
THE textiles and clothing industry has cut salaries for its workers by an average 30 percent as part of measures to contain costs and retain viability. Zimbabwe Textile Manufacturers’ Association (ZITMA) vice president Freedom Dube confirmed that several firms in the sector have embraced the move in order to keep afloat.
“Several individual companies have sought remedy in cutting the salaries of employees as a measure to try and remain afloat in their businesses,” said Dube.
The minimum pay for workers in the textile and clothing sector is $200 per month.
He said apart from cutting salaries clothing companies have also opted for short time work to avoid retrenchments.
“Short time work is a special measure that has been put in place by clothing firms as it is flexible,” said Dube.
“This in line with the new Labour Act, which allows companies to employ workers for two to three weeks when there is business and when the business reaches a downturn they stop workers from coming to work and call them when there is business,” said Dube.
To that end, he added, some companies were now offering between $100 and $120 pay after effecting the cut.
Dube said while some employees initially resisted the measure, which they felt was unfair, they now appreciate the option in light of low economic performance.
He said the sector has appealed to the government to come up with a law that forbids importation of blankets.
“We’re currently in talks with the government to come up with a statutory instrument that bans importation of blankets for the revival of local industry,” said Dube.
Clothing and textile manufacturers are targeting 100 percent capacity utilisation by 2020 following a government directive to ban all second hand clothes on the local market.
The government has identified several measures aimed at resuscitating the economy, which include new levies and taxies on imported commodities.
Online Reporter