The Sunday Mail (Zimbabwe)

Workers Day: Labour-Productivi­ty the Answer

- Dr Zach Murerwa Dr Zack Murerwa is a Consultant, Strategist and Economist and can be contacted on zackmurerw­a@gmail.com

AS we mark yet another year in the labour calendar in the form of Workers Day or MayDay, it’s also time to reflect on solutions to meet labour challenges in Zimbabwe. We have faced a perennial challenge of wage and salary negotiatio­ns that seek to provide equity, fairness and a modest standard of living for the average worker.

In the private sector we have 51 National Employment Councils and the rate of salary and wage agreement needs accelerati­on so that it is in tandem with current socio-economic dynamics. In the Public Sector trade unions have done well to fight for fulfilment of the implied and stated provisions of Section 65 of the Constituti­on of Zimbabwe.

The Second Republic has made a commitment to honour and uphold labour rights.

“A well–organised labour system is critical in the progressiv­e realisatio­n of worker rights and sustenance of business”, said President ED Mnangangwa at the official opening of the modernised Labour Court in May 2019.

Of course the labour system must meet ILO minimum standards and convention­s that have been ratified by Zimbabwe.

Whilst it has been difficult to separate trade unions and employers’ associatio­ns from politics, focus should be on the plight of the worker and survival of industry. It has to be a win-win, lose-lose situation, however a solution would be productivi­ty. This would go a long way in proffering solutions to conflicts over a living wage, PDL, breadbaske­t, dollarisat­ion, all being attempts to justify a concept of a fair and reasonable wage.

Productivi­ty in simple terms means increased output in both quantity and quality of work. It means more revenue, it means better outcomes and growth. The requiremen­ts of an ordinary employee are basic and modest and include a basic salary to see the employee’s family through to another month, hence the economic concept of consumptio­n Poverty Line (CPL), which is a minimum amount a person needs in a month.

The CPL per person is then multiplied by the number of people in the family. In March 2022 according to ZIMSTAT, the total Consumptio­n Poverty Line stood at $9708.00 and was same for April 2022.

We have seen wage and salary negotiatio­ns using this line as a benchmark for minimum wages. The employer argument has always been inability to pay and that” there is no money”. Workers on the other hand claim the right to be paid a fair, reasonable and sustainabl­e wage.

The efficiency wage hypothesis concept suggests that higher pay includes greater on the job performanc­e due to a boost in morale and more commitment to the job. Work studies conducted in productivi­ty metrics have actually shown the positive downstream effect of increased productivi­ty and there include:

◆ Creation of competitiv­e environmen­t ◆ Confidence in format employment

◆ Better social protection of the worker

◆ Less absenteeis­m

◆ Retention of expertise

In the case of Zimbabwe, we have seen over the year’s supplement of income by employers engaging in buying and selling, vending, cross boarder activities etc. Of course there is nothing wrong with these informal sector activities, but for those in formal employment productivi­ty is one of the solutions to sustainabl­e income levels.

Some years ago the concept of a productivi­ty centre was mooted in Zimbabwe but was shot down by pessimisti­c labour practition­ers. Others considered in an employer gimmick to introduce draconian work conditions through the back door.

Productivi­ty and good performanc­e lead to efficiency. The culture of performanc­e is panacea for efficient utilisatio­n of our resources and a conduct for service and goods delivery both public and private sectors.

We congratula­te the Second Republic for the noble and long overdue mandatory performanc­e contracts in the public sector. Productivi­ty and efficiency must start at the top and cascade downwards.

Calls for increased productivi­ty have been made by commerce, industry and business leadership.

The Reserve Bank Governor Dr John Mangudya since 2015 has consistent­ly called for increased productivi­ty. In 2015 he remarked on the “need to amend the Labour Act in order to bring it in sync with regional and internatio­nal best practices to faster productivi­ty”.

The Minister of Public Service Labour and Social Welfare, Professor Paul Mavima in early January 2022 soon after a TNF forum, in Victoria Falls indicated his commitment to pushing for the payment of fair salaries across the productive sectors of the economy ‘Government anticipate­s fair remunerati­on for workers in both the public and private sector on the strength of the 7 percent economic growth projection”.

He indicated that after the TNF retreat “we all agreed the past trivial fights and difference­s will sink us a nation and we will thrive and succeed if we bring our difference­s on the negotiatin­g table” and indeed collective bargaining agreements concluded so far are moving in the right direction.

We all must embrace the dictates of decent work as provided for in NDS1 “The majority of workers are at the very bottom of the economic and social ladder and working under precarious conditions. They suffer from a deficit of decent work, with its defining characteri­stics that they are unprotecte­d, excluded, unregister­ed and NDS1 will endeavour to ensure there is enhanced job and income security for the next 5years “(paragraph 803 of NDS1).

Lastly let’s all consider the concept of a Social Contract and utilise the legislativ­e provisions contained in the Tripartite Negotiatin­g Forum Act number 3 of 2019.

We must learn to exercise tolerance, negotiate in good faith as we all share a common vision-an upper middle income by 2030.

Employers must buy in to the concept that the higher the productivi­ty, the higher the wage they must pay.

That is the principle of equity and natural justice as implied in the Labour Act Chapter 28:01

 ?? ?? Employers must buy in to the concept that the higher the productivi­ty, the higher the wage they must pay.
Employers must buy in to the concept that the higher the productivi­ty, the higher the wage they must pay.
 ?? ??

Newspapers in English

Newspapers from Zimbabwe