admin
EMPLOYERS have objected to the new Labour Amendment Bill that was gazetted last Friday, predicting massive company closures and more job losses if the Bill is passed into law.
Confederation of Zimbabwe Industries (CZI) president Mr Busisa Moyo described the Bill as reactionary and insensitive to the interests of business.
Mr Moyo called for wider consultation before the bill is promulgated, warning that the country could be plunged into further crisis if the proposals in the bill were maintained.
The new Labour Amendment Bill proposes a minimum retrenchment package for workers in the event that their work contracts are terminated on notice.
If the Bill becomes law, thousands of workers who were dismissed on three-month notices will be entitled to compensation for termination of their contracts.
Clause 5 of the Bill says those who lose jobs on contract termination are entitled to minimum retrenchment benefits that include one month’s salary for every two years of service.
This will apply to both retrenchees in general and workers whose contracts were terminated on or after 17 July, with employers required to pay up “no later than the date when the notice of termination of employment takes effect”.
Mr Moyo said most companies operating in the country did not have the capacity to pay retrenchment packages, arguing that the setting of a minimum retrenchment package would choke most companies into closing.
“Most companies don’t have reserves. They are operating with just enough working capital to sustain current operations. They can’t pay retrenchment packages.
“If this Bill is passed into law a lot of companies are going to close. We will witness massive filings for liquidation and judicial management, because companies will not be able to meet the obligation.
“Payment will remain a problem because companies don’t have the capacity and employees will be put in the same position of losing jobs that we are trying to deal with,” said Mr Moyo.
The CZI president noted that the process of crafting the Bill had disregarded the Tripartite Negotiating Forum, leading to proposals that are insensitive to the interest of employers.
Mr Moyo slammed Government for not giving employers adequate room to make their contributions into the crafting of the Amendment Bill.
“I want to dismiss claims that the employer was absent in the process of coming up with the Bill. We were not given adequate notice to come up with our submissions. We were given 48 hours to prepare for a meeting which was postponed and we were given another 48-hour notice.
“As CZI we have 350 members and 28 industrial associations whom we wanted to consult first. If we had been given seven to 14 days that would have been adequate for us to consult, research and come up with meaningful submissions,” he said.
“We need to go back to the Tripartite Negotiating Forum. We need to respect the forum. If we undermine it we will have problems in getting the country at a position where we have a social contract towards growth and economic growth.
“Let’s go to the TNF and look for models sensitive to both parties than acting in a reactionary manner.”
Employers’ Confederation of Zimbabwe (EMCoZ) president Mr Jack Murehwa underscored the need for the country’s labour laws to be investor friendly.
Mr Murehwa reiterated business’s commitment to abide by the agreement signed by the Tripartite partners at the beginning of this year.
He said if the 13 principles of the agreement were to be adopted, they would “assist the country by transforming the current labour laws from being anti-employer and anti-investor to more business and investor friendly”.
“The country, at this point, seriously requires investor friendly Labour Laws. Anything short of that will, unfortunately, be an attempt to continue to pursue the same unfriendly labour law provisions over and over again, while at each turn, expecting a different and better result.
“Demonising and punishing business and maintaining the same retrogressive labour laws provisions is one sure way to ensure that businesses continue to close. Few insignificant investors brave the intolerable labour law provisions and employees in formal investments continue to dwindle,” he said.
Mr Murehwa, however, said business remained hopeful that the proposed amendments would be moulded to address the need to keep businesses running and new businesses opening to increase the net number of employees in the formal sector.
An estimated 20 000 workers have lost their jobs without compensation following a recent Supreme Court ruling that allowed employers to terminate employee contracts on three months’ notice.
This prompted Government to step in with President Mugabe on Friday summoning the Senate and the National Assembly from recess to consider the Labour Amendment Bill.
Online Reporter