By James Chiromo| Employees at Waverley Blankets have downed tools in protest against the company’s refusal to comply with an arbitration outcome that ordered all textile employers to increase their workers’ salaries to a minimum of US$184.00 per month.

Waverley Blankets employees spent the entire Tuesday night locked inside their Graniteside factory protesting against a weekly net wage of ZWL$30,738.00, which translates to a monthly salary of ZWL$122,952.00.

The prevailing RBZ auction rate as of 30 May 2023 stood at USD1: ZWL$2577.05.

According to a circular from the National Employment Council For The Textile Manufacturing Industry, textile industry players were supposed to pay 45 percent of the US$184 in foreign currency and 55 percent in local currency at prevailing rate.

The circular reads:

“The deadlock on wage negotiations in the Textile Manufacturing Industry has now been resolved through voluntary arbitration as agreed by the parties.

“Accordingly, the arbitral tribunal awarded that the minimum wage be US$184.00 with the same percentage differential applying across all grades/levels.

“That all companies in the Textile Manufacturing Industry shall pay 45% of minimum wages in United States Dollars and the remaining balance of 55% shall be paid in local currency i.e ZWL, at the prevailing official exchange rate, at the date of processing. For the avoidance of doubt the official exchange rate refers to the RBZ auction rate.”

According to sources privy to the developments at Waverley Blankets, the company’s Managing Director applied to the National Employment Council For The Textile Manufacturing Industry for exemption from paying the wages agreed during the arbitration process.

In response, the council wrote back declining the application for exemption.

The letter, which was seen by ZimEye, reads:

“It should be noted that your application for exemption was considered and declined. In other words, it was turned down or rejected and therefore there is no pending application for exemption before the NEC.

“In the circumstance, the status quo of the arbitral award is still in force until it is set aside by a competent court.”

The employees have vowed to continue with their strike until the company complies with the arbitration outcome.