Exempting SEZs-based firms ill-advised: ZCTU

THE Zimbabwe Congress of Trade Unions (ZCTU) yesterday said exempting companies that will operate in Special Economic Zones (SEZs) from the Labour Act is ill-advised and will lead to workers being subjected to unfair treatment.

According to section 56 of the proposed SEZs Bill, companies operating in the zones would be exempt from provisions of the Labour Act.

“This clause provides for the approval to not have the Labour Act (Chapter 28:01) and the Indigenisation and Economic Empowerment Act (Chapter 14: 33).”

ZCTU north eastern region chairperson Jokoniah Mawoya said only the uniformed forces were not governed by the Labour Act hence it was inconceivable that companies in SEZs would be exempted as well.

He said, “Unless if soldiers would be employed in the SEZs,” the ZCTU would fight to have the clause removed from the Bill.

“This is a total attack on labour. Like any other businesses in Zimbabwe those who will operate in special economic zones should be guided by the Labour Act,” he said in an interview on the sidelines of a public hearing on the proposed SEZs and Public Finance Management Bills.

The Parliamentary Portfolio Committee on Budget and Finance was conducting the hearing.

“We are not going to allow this Bill to take away the rights of the workers,” said Mr Mawoya, adding a written submission would be made to Parliament in due course.

Under its five year economic policy the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the government identified establishment of SEZs as a strategy to boost growth and development.

SEZs are designated geographical areas that operate under different economic rules from the rest of the economy.

Zimbabwe has identified the second largest city, Bulawayo among the first SEZs to be established in the country.

Analysts have commended Zimbabwe for initiating the process to establish SEZs, saying these would assist in improving the investment climate.

African Countries that have used the SEZs strategy include Mauritius, Zambia, Algeria, Nigeria and Ethiopia.

The regions, which could be in the form of free trade zones, industrial parks and free zones, could be used as starting points for national development.

However, key challenges faced in most African SEZs include infrastructure, zone management and continuity in instances where governments have changed. - New Ziana.