ECONOMIC AGENDA: Why workers shunned May Day

by Takunda Mugaga

IN almost every part of the world, Workers’ Day is used to reflect on the contributions of employees to the growth and development not only of their particular organisations but the economy as a whole.

Zimbabwe is no exception when it comes to commemorating the contributions of sons and daughters of the soil.
However, Sunday came and went without any formal recognition and if it had come 30 days earlier people would have mistaken it as an April fool’s hoax.

Both public and private sector employees have been getting a raw deal of late and the conditions of workers remain pathetic.
Arguably it is still cheaper to employ a Zimbabwean worker than any other nationality if a global comparison is to be made.
Worse still, during the era before dollarisation an average worker was taking home between US$2 and US$5 a day. Of course, it is debatable how the exchange rate was determined then.

Most economies across the world are becoming more and more reliant on local demand to spur production. This follows the fragility of export-led growth following its full utilisation by the Asian Tigers.
Even the China of today is convinced about the need to empower half a billion of its employees through awarding them decent salaries since the West cannot continue to be relied on as the consumers of their products.

This followed the clamouring by Hank Paulson, then Treasury Secretary under George W. Bush’s government, for China to devalue its yuan by at least 40 percent following an unsustainable trade deficit of almost US$250 billion by the US in the context of Sino-US trade relations.
South African President Jacob Zuma called for a Buy South African campaign to be ratcheted up.

Speaking at the May Day celebrations in his country, President Zuma said the only way to save South African jobs is by promoting local production.
Most African countries continue with the same mistake of exporting employment to the already developed parts of the world through infinite import of finished goods whilst simultaneously exporting low value raw materials.

They expect the Bretton Woods institutions to proffer miraculous solutions to their already ailing economies.
With the unemployment rate above 85 percent, the average monthly salary in the country is pegged at US$150 without any medical aid or pension contribution.
It also excludes standard benefits like a mortgage to acquire even low-cost housing units.

The May Day celebrations in Zimbabwe definitely flew in the face of most Zimbabweans as a farce than a day worth celebrating.

Gone was the pomp and fanfare that used to characterise such days and most workers were left quite disillusioned.
Companies are giving more credence to actuarial evaluations more than worker contributions.
For top management to continue being disdainful of the penury conditions of their workers and persist on throwing frivolous statistics on capacity utilisation as a reason for their wage freeze is honestly insincere.

Retail shops have spread more than ever before and they are offering their workers no security whatsoever. Where is ZCTU, ZFTU, AAG and other relevant bodies when all this mess is allowed to continue thriving?
There is no way you can masquerade as empowerment specialists when you are failing to defend your brothers and sisters.

Most are holed up in those boutique shops, nascent private colleges and other organisations where asking for an offday let alone leave will be viewed as a way out of the company.
Most foreigners have been allowed to establish their business operations in Zimbabwe and the absence of unionised labour markets has become a breeding ground for the ill activities they are accused of.

A nation which is developing is expected to experience urbanisation with rural to urban migration being more dominant. The absence of workers’ benefits, and rights will complete a migration cycle by pushing the same employees back to rural settlements for retirement since no investment would have been accumulated during their years of service to different companies.

Labour and Social Welfare Minister Paurina Mpariwa and her team should have seen their job well cut out for them regardless of the political set-up of the current Government, which is inclusive in nature and shape.
Normally, wage levels is a function of demand and supply for labour which we consider derived demand since it’s the output demand for that labour which determines the underlying variable — labour.

However, in Zimbabwe we still have corporates which have managed to weather the economic storm, but remain conservative in their wage policy.

Even companies rated as the best employers in this market continue holding on to a bigger wage margin if a technical analysis incorporating their total revenue is factored in.

This is mainly due to the absence of a vibrant labour watch dog hence leading companies to see payment of wages as a “bonus”.

These organisations always blame the macro-economic environment for their micro deficiencies.
Our May Day celebrations were eclipsed by events from Italy, Britain, USA, South Africa, Pakistan.

The death of Osama bin Laden saw the USA greenback and stock markets gaining.
However, the potential threat of tension remains in the Middle East with most Americans wondering how the terrorist leader could have been holed up in Abottobbad, 50km north of Islamabad, just a stone’s throw away from a military base in Pakistan.

The capture of the hitman might also give the Obama administration the courage to face the Democrats in next year’s presidential elections. But I expect the Republicans to capitalise on the presence of Robert Gates, whom they have anointed before he was retained by the Obama administration.

This could also be an opportunity for Obama to bring to rest the assertion which was promoted by his rival in the primary elections, now his Secretary of State Hillary Clinton, that Obama was not prepared to answer a phone call at 3.00am to save America.

It is my sincere hope that May Day celebrations for 2012 will come with a different theme and a different face to our industry and labour market.

Let the wage rate stick where it must and rise when the fundamentals are pointing to it.
Thank you and God bless you.