Companies should cut wages – CZI

HARARE - There is a need for some local companies to reduce their wage spending in order to revamp production and beat the competition from foreign companies, an official has said.

The president of the Confederation of Zimbabwe Industries (CZI), Kumbirai Kadzani, appealed to local companies to reduce their wages, re-equip and re-tool to meet targets in terms of reducing the cost of production.

“Due to the slow economic recovery and exorbitant wages, companies cannot afford to boost their cost of production. Competition with foreign companies is steep,” said the CZI president.

He said companies had to operate and survive within their means.

“There is a need to allow economic growth and survive within a company’s needs. Companies should make it their mandate to promote the growth and improvement of the economy,” he said.

He said most consumers were not prepared to pay high rates and therefore wages did not take into consideration what was happening on the ground.

“Consumers are not willing to pay high rates but politicians are not coming out in the open to let people know that if wages are high rates will automatically increase,” he said.

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