US embassy cable - 04HARARE1703

UNCLAS SECTION 01 OF 02 HARARE 001703 
 
SIPDIS 
 
STATE FOR AF/S 
USDOC FOR AMANDA HILLIGAS 
TREASURY FOR OREN WYCHE-SHAW 
PASS USTR FLORIZELLE LISER 
STATE PASS USAID FOR MARJORIE COPSON 
STATE FOR DRL/IL 
 
SENSITIVE 
 
E. O. 12958: N/A 
TAGS: ELAB, EAID, EINV, ECON, PGOV, ZI, Zimbabwe Congress of Trade Unions (ZCTU), Economic Policy, Economic Situation 
SUBJECT: ZIMBABWE LABOR: IF YOU PRICK US, DO WE NOT 
BLEED? 
 
Ref: Harare 00864 
 
1. (SBU) Summary: In wide-ranging discussions with 
EconOff, Zimbabwe Confederation of Trade Unions (ZCTU) 
affiliates described the toil required to fight for 
members' living wages. While workers and employers agree 
on the macro problem (the GOZ), disputes remain over 
wages and working conditions. Many unions expressed 
dissatisfaction with the GOZ's "look East" policy and a 
number remain targets of GOZ repression. End Summary. 
 
2. (SBU) EconOff spoke with the Commercial Workers Union 
of Zimbabwe's (CWOZ) Secretary General Taringa, Zimbabwe 
Catering and Hotel Workers Union's (ZCHWU) Secretary 
General Mudzengerere, Zimbabwe Construction and Allied 
Trade Workers Union's (ZCATWU) General Secretary Gumbo, 
Associated Mine Workers Union of Zimbabwe's (AMWOZ) 
General Secretary Midzi, and Zimbabwe Domestic and Allied 
Workers Union's (ZDAWU) Deputy Secretary General Ruyi. 
 
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WAGES, THE ECONOMY, AND ASIAN INFLUENCE 
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3. (SBU) In Zimbabwe, the employers' council and labor 
union of each economic sector negotiate labor issues. In 
Zimbabwe's strained economic environment, labor 
negotiations are a mixed bag. While CWOZ, ZCHWU, and 
ZCATWU report generally amicable negotiations, the AMWOZ 
and ZDAWU complain that employers refuse to follow labor 
laws and increase wages consistent with inflation. 
 
4. (SBU) Zimbabwean labor officials provided a unique 
window into the local economy. For example, Midzi 
believes mining companies do earn small profits from 
global mineral prices. However, he expects that South 
African firms will eventually control the mining sector. 
Ruyi asserts that more employers violate workers rights 
than follow the law. Mudzengerere notes that tourists 
visiting Victoria Falls tend to spend the night in 
Zambia. Gumbo states that the construction industry has 
shrunk from 120,000 to 15,000 employees since 2000. 
 
5. (SBU) In 2000, as part of its anti-Western slant, the 
GOZ launched a "look East" policy focused on China, 
Malaysia, and Indonesia. With Zimbabwe's overvalued 
currency making imports increasingly competitive, the 
Chinese in particular have been able to gain a foothold 
in many retail sectors. Senior union officials across the 
board expressed nothing but dissatisfaction with the 
growth of Eastern businesses in Zimbabwe as a result of 
the look east policy. Midzi cited regional unions' 
complaints of Eastern business treating workers worse 
than Western; Taringa noted that Chinese firms hire 
workers on short-term contracts, making organizing 
harder; Gumbo complained that Chinese firms stay outside 
of employer councils, fail to pay minimum wages, and 
negotiate only with the GOZ. 
 
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SPLINTERS ARE A THORN IN UNIONS' SIDE 
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6. (SBU) Union officials recounted to EconOff a long list 
of repressive tactics by the GOZ. The GOZ targets the 
ZCTU by arresting its leaders and by breaking up its 
rallies. [Note: On October 12, 2004, the Zimbabwean 
police arrested three members of the Communications and 
Allied Service Workers Union, who were striking over the 
failure of the state-owned post and telecommunications 
company to pay a wage increase that was awarded after 
arbitration. End Note.] In an attempt to draw membership 
away from the ZCTU, which it perceives as sympathetic to 
the opposition MDC, the GOZ also created an alternative 
labor body, the Zimbabwe Federation of Trade Unions 
(ZFTU)(Ref). Union officials complained that these 
actions foster confusion and force legitimate unions to 
spend scarce resources to shore up their base. ZCTU- 
affiliate officials complained that the ZFTU plagiarizes 
ZCTU-negotiated agreements and attempts to banish 
legitimate unions from whole geographic regions. 
 
7. (SBU) Comment: Zimbabwe's severe economic downturn, 
characterized most vividly by a sharp decline in real 
wages, has combined with intense competition from Asian 
firms and GOZ repression to create an hostile environment 
for the ZCTU. Unfortunately for workers, at the time that 
they are most in need of strong union representation, the 
unions are finding it increasingly difficult to play this 
role. 
 
Weisenfeld