Construction workers in Zimbabwe are demanding for five percent wage increase, setting the stage for a bruising struggle with their employers, many of whom are struggling to get contracts due to a deteriorating economic situation.
This is according to a memo sent out to the Zimbabwe Building Contractors Association members in which the organization’s chief executive officer, Crispen Tsvarai, is negotiating for their input.
“Accordingly, the association requests you to forward your positions and opinions on the matter before the next negotiations committee meeting to be held in May 2016.”
The demand by construction workers for an increase of their wages comes at a moment when many businesses are closing while many of those that are still surviving the economic waves are struggling to pay their workers on time.
The demand for increase in wages also comes at a period when inflation has persistently remained high.
The construction sector has been on the receiving end of harsh economic times because its growth is directly and closely linked to the performance of the economy..
Last month, Bitumen Construction services (Bitcom) auctioned all its equipment and immovable assets so as to settle a judicial debt, while another giant in the construction industry, Tarcon Africa, auctioned its equipment under similar circumstances.
CZL, another construction giant in the construction industry has been placed under judicial management
The construction industry has generally been in the falling gear for the past decade and a half.
At its climax in the mid 1990s, the industry used to employ over 35 000 people, but the figures dwindled to a mere 3 000 in 2009, and the dropping trend has persisted.
Stakeholders in the industry say the country’s ‘Look East’ policy has been of less benefit to them as most of the contracts that are funded by Chinese government loans require that firms from china become the main contractors and suppliers, leaving local companies to come in as sub-contractors.
