adminMoline Gagare Chronicle Reporter
ZESA has dismissed reports that it is mulling a six percent tariff increase to cover $118 million in workers’ salary arrears reached following a Collective Bargaining Agreement award.
In a statement yesterday, the power utility said it had not tendered an application to increase tariffs to the Zimbabwe Electricity Regulatory Authority (ZERA).
“The correct position is as follows, Zesa is not mulling an increase in electricity tariffs by six percent to cover for salary arrears as is alluded,” said Zesa in a statement.
The power utility said for the past three years, its management unsuccessfully contested the Collective Bargaining Agreement award, which was as a result of Statutory Instrument 50 of 2012.
The power utility said paying $118 million to the workers was unsustainable as it would compromise service delivery.
“Management has consistently maintained from the onset that that it was not in a position to implement the CBA award as most of the revenue would go towards salaries whilst at the same time compromising service delivery,” said the press statement.
“The CBA award requires that Zesa pays a total of $118 million as back pay and further places an additional $5,7million to the current payroll on a monthly basis, which the organisation cannot sustain. Zesa has offered staff a once-off settlement of $21 million.”
The press statement released by Zesa indicates that industry norms in the electricity sector dictate that staff costs do not exceed 30 percent of the revenue in the interests of better service delivery.
In a recent interview, Zesa head of finance, Eliab Chikwenhere, argued that Zesa was in a “parlous financial situation and their liabilities exceeded their assets.”
Online Reporter