The Sunday Mail
PUBLIC Service, Labour and Social Welfare Minister Nicholas Goche has won plaudits from an unlikely constituency labour unions over his obstinate refusal to support the casualisation of labour as sought by employers in their bid to cut operating costs.
It has been normal to see Government and labour pulling in different directions, but they appear to have struck a chord on labour reforms.
Government has been in negotiations with labour and business on amendments to the Labour Act in line with the prevailing macro-economic environment.
Companies are fretting over the current Labour Act, which they claim is skewed in favour of employees.
It is believed that employment costs now contribute up to 70 percent of the cost of doing business.
The private sector, which is reeling from the effects of a liquidity crunch, has shelved retrenchment plans because companies are unable to pay termination packages while those that have retrenched are fighting legal battles with employees to get their dues.
At its 2013 congress, the Confederation of Zimbabwe Industries suggested that the existing labour laws were burdening productivity and industrial competitiveness.
They proposed abolishing fixed-term contracts; introducing a productivity-based pay system; and a standard retrenchment package of one week’s salary for every year worked as opposed to the current two to three months pay for every year worked.
The proposed amendments, which have drawn ire from labour representatives, could become law before year-end.
Minister Goche told The Sunday Mail Business that negotiating parties made “a number of compromises” and agreed on most of the principles of the amendments.
He said an inter-ministerial committee was supposed to have met last Wednesday to deliberate on the amendments but did not after failing to form a quorum as some ministers had to attend
Unavoidable
commitments
Minister Goche said the committee will regroup this week.
“We have agreed on most of the principles with business and labour representatives. Everyone is agreed on the need for amendments to the Labour Act, but as Government, we flatly refused to agree on the issue of labour flexibility which employers wanted.
“We said no to labour flexibility because we cannot allow the arbitrary dismissal and casualisation of labour. But we compromised on some issues that labour and business wanted. In the end, everyone compromised on some issues.
“So when the inter-ministerial committee meets next week we will present the report and discuss it. I think we are on course to having the amendments becoming law before year end,” said Minister Goche.
He could not shed light on other principles already discussed and agreed. Retrenchments, under the proposed amendments, will no longer be an interminable process because “when a retrenchment matter arises, it will be dealt with at workers’ union level and even if there are disagreements, the issues would be resolved within 30 days,” noted Minister Goche.
Employers’ Confederation of Zimbabwe director Mr John Mufukari said the Labour Act amendments would relieve pressure on firms who were currently forced to pay an unproductive workforce.
“Almost all companies are living from hand-to-mouth and cannot sustain the salaries for people that are not productive. We have agreed on the amendments to be made to the Labour Act. There were 13 principles that we discussed and we agreed on 11, partially agreed on one and disagreed on one,” said Mr Mufukari.
He was also hopeful that reforms would be enacted before year-end.
When Goverment, business and labour agree on amendments, they will be taken to Cabinet for debate, then to Parliament.
Zimbabwe Congress of Trade Unions secretary-general Mr Japhet Moyo could not be reached for comment.
United Food and Allied Workers’ Union of Zimbabwe secretary-general Mr Adonia Mutero praised Minister Goche for declining to sanction arbitrary hiring and firing, and legislated casualisation of labour.
He said if the amendment had sailed through, it would have plunged the country back to the master-servant era. Mr Mutero said some of the proposals being pushed by business were in line with their philosophy to “remove any bottleneck to their profit-taking agenda”.
“Capital is trying as much as it can to get free labour. We are witnessing big companies in Zimbabwe being recapitalised and automated. Automation of industries has resulted in increased production and a sea of unemployed labour as warehouses are now full.
“In the negotiations for amendments, employers were the only group speaking with one voice while there was discord in Government and labour. From Government, Finance Minister Patrick Chinamasa is pushing for labour flexibility while Minister Goche has refused to accede to the proposal of employers on casualisation of labour, sub-contracting and retrenchments . . . Agreeing to casualisation of labour would be like returning us to the dark era of slavery,” he said.
Mr Mutero urged employers to embrace Government’s indigenisation and empowerment regulations which he said provided answers to employee concerns.
“If employers are saying current labour laws are not flexible and not investment friendly, then there is this pro-worker policy which they are resisting — the employee share ownership scheme.
“It is a policy that can address these issues. When we are stakeholders, we directly participate in the negotiation process and when a company makes a profit, we will know, if it records a loss, we will also know.”
