ZCTU Calls for Minimum Wage in USD Amid Currency Devaluation

The Zimbabwe Congress of Trade Unions (ZCTU) has called on employers to establish a minimum wage in United States Dollars (USD) to protect vulnerable workers. This appeal comes in response to the Reserve Bank of Zimbabwe’s (RBZ) recent devaluation of the Zimbabwean Gold (ZiG) currency, which has significantly impacted workers’ salaries.

In a statement, ZCTU Acting Secretary General Kudakwashe Munengiwa highlighted that the unexpected devaluation has led to a 44% loss in earnings for workers, exacerbating their financial struggles. Munengiwa also expressed concern over the rising prices of ZiG transactions and commodities, which have been implemented by many shops across the country.

Meanwhile, RBZ Governor Dr. John Mushayavanhu explained that the exchange rate for the ZiG needs periodic adjustments to align with current economic realities. He emphasized that these adjustments are crucial for absorbing excess liquidity in the economy, stabilizing inflation expectations, and minimizing future inflation disparities.