Businesses advised to adopt labour broking

A LOCAL labour and industrial consultant has advised businesses to adopt labour broking as a way of ensuring security in terms of payment of workers.

Labour broking is where a third party conducts or provides workers to a company to render a service or perform work for a reward the same way insurers provide cover for services. Speaking at a recent Employers Confederation of Zimbabwe (EMCOZ) annual congress here, Mr Memory Nguwi, who is director of Industrial Psychology Consultants in Harare, said businesses in other countries such as Namibia were pursuing the practice as it has benefits for both the employer and worker.

“Labour broking is new but the take up rate especially by those with workers on contract is rising,” said Mr Nguwi.

He said through labour broking, companies would avoid clashing with workers over salaries.

He said legally, there was nothing wrong with pursuing labour broking as it has worked in Namibia and South Africa.

“In the past few months a lot of businesses have been taking this route. Currently, there is no law which prohibits labour broking and so, until someone decides to go to court companies can pursue this route. It helps employers manage cost of labour and companies would adopt this just like in insurance, you will just be passing risk to a third party,’ he said.

The congress, which was officially opened by Vice President Emmerson Mnangagwa, was attended by officials from Ministries of Industry and Commerce and Public Service, Labour and Social Welfare as well as from trade unions and employment councils.

Contributing in the discussions, participants challenged workers to dedicate themselves to increase productivity.

“The question is what value are you adding to the company as an employee? Workers should give their best. If we can get this done, we would have reached a paradigm shift necessary for revival of the economy,” said a participant.

Another called for ‘ part fixed and part variables’ kind of salaries and wages.

“When we design wages and salaries can we move to part variable and part fixed and EMCOZ should pursue this issue. Part fixed will protect the employee while the variable will ensure they get paid more when an organisation’s productivity rises,” said a participant.

Labour lawyer Mr Rodgers Matsikidze said the country needs to be consistent with its labour laws. He said amendments that were made to the labour law last year were hastily effected hence the new law has numerous shortcomings. — @ncubeleon