Telecel Zimbabwe will be paying 20% of the salaries via juice cards (Airtime credit top up cards) against their employees wage bills, according to the newly appointed Chief Executive Officer , Mrs Angeline Vere.
“We are not going to be cutting any salaries, but have however introduced a cost effective measure that we think will go a long way in sustaining both the company and the employees”
revealed Angeline during a one on one interview with TechnoMag,over her recent official introduction to the press.
“The juice cards can be sold or easily exchanged to cash or equivalent value on the market, or maybe someone may decide to give them to their beloved ones, the choice is all open”, said another Telecel Zimbabwe official.
She furthur revealed that they may be other options for those who may not want the juice cards ,that is getting their 30% salary being moved over to 2016, which may be a better financial year.
“When Econet coughs, Zimbabwe sneezes, these are nothing but early signs that we are heading for tougher times ” said another analyst.
They recently announced their salary cuts across board by at least 35%, a move which they hope will make them more sustainable.
Econet however went on to appealing to its suppliers to also cut their supply bills by 35% to match the corresponding market depression.
The ICT minister recently, said Econet should consider optons like sharing their infrastructure to save costs, not appealing to the market for price cuts.
This new situation has been largely caused by newly introduced 70% deep in returns caused by 5 percent excise duty on airtime sales, a 25 percent duty on handsets and ICT products and a 5 cents levy per transaction on mobile money transfers, compounded by a 35 percent voice tariff reduction. This has negatively affected the viability of the telecommunication sector, which we think will be detrimental and will stifle growth of the sector.
Zimbabwe Telecoms sector alone, all operators combined is the largest tax payer to the nation`s fiscus and these effects will not be felt by the Telcos alone but the whole nation at large from shrinking tax revenue, to shrinking wage bills,to the last man on the street who will find it difficult to sell his commodity too.
Probably we need policy intervention now not later to save our once performing sector from sinking