Workers Day: Labour-Productivity the Answer
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