Maravi

Zim trade unions shelve mass action plan

Zim trade unions shelve mass action plan
Written by Kingsley Kaswende in Harare

THE Zimbabwe Congress of Trade Unions (ZCTU) has shelved plans of its countrywide mass action until it analyses the impact of the central bank's move to increase bank withdrawal limits.

ZCTU president Lovemore Matombo said yesterday that the Reserve Bank of Zimbabwe (RBZ)'s swift move to obey the union's seven day ultimatum to increase the withdrawal limits from Z$1000 [US$1] to US $20,000 [US$20] would "to some extent" alleviate people's suffering.

"As you might be aware the ZCTU ...gave RBZ a seven-day ultimatum to address the current deepening cash crisis affecting the generality of Zimbabwean workers. This followed concerns that ordinary Zimbabweans, particularly workers, were finding it difficult to access their hard earned money from the bank. [ZCTU] noted the response by the RBZ. To this end, the Mass Action penciled for October 1 has been deferred while we assess, in consultation with our structures, the impact of the RBZ move to increase the daily maximum withdrawal limit," Matombo said in an interview.

Thousands of people on Monday besieged commercial banks around the city when it emerged that the withdrawal limits had been raised.

On the same day, the RBZ introduced higher denomination banknotes of Z$10,000 and Z$20,000 in an attempt to ease cash shortages.

The central bank has also licenced 600 shops countrywide to trade their goods and services in foreign currency in a bid to relieve the local currency.

The central bank said the licences will allow stores, supermarkets, gasoline importers and other businesses to import and sell goods for US dollars, South African Rand and other foreign currencies.

Much of the foreign exchange is already traded on the illegal black market.

The Reserve Bank noted in a statement it charged businesses US$20,000 for a licence, and will also get 15 per cent of the foreign currency sales.

But the ZCTU expressed dismay at the move by the RBZ to allow shops to sell products in foreign exchange.

"This will seriously affect the ordinary people who have no access to foreign currency," the ZCTU said.

Labels: MDC, STRIKE, ZCTU, ZIMBABWE

posted by MrK @ 8:14 PM