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THE economic challenges that have bedevilled this country have affected many businesses and workers too, though there is a general feeling that workers have borne the brunt of the company closures and retrenchments across all sectors. As workers trudge into an uncertain future with trepidation, moreso around this time when they are about to mark Workers’ Day this week, it comes as sweet news that the Government is putting in place measures to ensure amicable and just separation between employers and employees in the event that retrenchments become unavoidable.
We learn that the new requirements include submission by companies of the salary structure of the executive and management as well as allowances. Public Service, Labour and Social Welfare Minister Prisca Mupfumira, said companies wishing to retrench should get approval from Government before laying off workers.
“They should also submit the total wage bill of the company, highlighting how much will be saved by the proposed retrenchment. They should also submit the company board of directors fee structure including the allowances paid to the directors. They should also submit measures previously undertaken by management and workers to avoid retrenchments,” said Minister Mupfumira.
We applaud the Government’s bid to ensure that companies do not unnecessarily throw workers onto the streets, sometimes in order to make room for hefty remuneration for top management. There has also been a stern warning to companies against providing false information to facilitate granting of approval to retrench, with the minister saying such firms risked prosecution.
We believe workers and employers need to operate on the principle of utmost good faith in their dealings and open communication so that in the ups and downs in business they can be able to ride the storm and steer their business from the troubled waters through sharing ideas. An atmosphere of suspicion does not help matters when companies start performing poorly and it is worrying that there is a trend whereby top management, who pocket much of the money in salaries, are not affected by retrenchments when workers feel the failure or success of these firms rests on their shoulders.
The measures by the Governnment seem to have struck the right chord with the workforce with the Zimbabwe Congress of Trade Unions secretary-general, Mr Japhet Moyo, saying they had written to the minister thanking her for the intervention.
It is generally accepted that salaries in the country are on the low side for most employees, hence the general outcry over salaries and wages deemed below the poverty datum line.
It is in this light also that pronouncements by the Reserve Bank of Zimbabwe at the weekend that prices of local products should be reduced further to improve competitiveness against foreign imports deserve praise.The rounding off of prices due to a lack of change saw many companies overpricing their products and enjoying massive profits.
The central bank is merely appealing to these companies to price competitively so that the burdened local employees do not opt for foreign cheaper goods to their detriment. We support the RBZ Governor Dr John Mangudya’s call for the reduction of the costs of doing business and ultimately of product prices.
The governor feels bank interest rates of around 30 percent need to come down and that since the US dollar has been appreciating against other currencies this made our products more expensive hence the need to reduce prices to restore our competitiveness.
We believe if these recommendations are followed we shall have a win-win situation where workers’ salaries could take them much further while companies could see their volumes increasing through reviewing their mark-ups and ultimately product prices.
Online Reporter