adminLovemore Zigara Midlands Correspondent
THE Employers Confederation of Zimbabwe (Emcoz) has expressed willingness to engage with the labour representative body, the Zimbabwe Congress of Trade Unions (ZCTU), on the contentious issue of labour market flexibility.Emcoz president Jack Murehwa said the employers’ body was willing to engage the ZCTU in order to address some of the issues being raised by the labour body.
He said: “If I am running a company, I know I should pay the labour that is working for me but if it is closed the work stops on that day.
“We are having those situations where companies are closing because overhead costs including labour costs are very high. At times companies are closing because the cost of retrenchments far exceeds the costs you will require to resuscitate the company. What we have told ZCTU is that we have heard you but we do not understand you. We are inviting them to the table and we are ready to engage. So Emcoz at anytime are ready to engage the ZCTU on any issues that they may have.”
ZCTU president George Nkiwane said negotiations with employers would be to reaffirm their position that they are against labour market flexibility.
“Our position is very clear that we are against labour market flexibility. Even where it is being practised in countries like Germany, there is a resolution against it. In other countries in Europe, when one is retrenched one is entitled to six months’ salary and after that you are given unemployment benefit.
“In Zimbabwe it is impossible to implement this because of resource constraints and as a result we will end up being a destitute nation.”
In his 2014 budget presentation statement, Finance Minister Patrick Chinamasa announced that government would review the country’s labour laws in an attempt to create a flexible labour market, which should see an increase in productivity.
Labour market flexibility makes it easier for companies to hire and fire employees and to alter working hours as well as revising wage rates.
In March, Cabinet agreed to amend the Labour Act in order to loosen constraints in terms of retrenchments, terminal benefits, working hours and the arbitral awards system. However, the move has incensed the ZCTU which feels the amendment of the labour law will give employers more bargaining power and could result in employees being fired willy-nilly.
Online Reporter