adminSpeaking at the 2013 pre-budget consultative meeting in Bulawayo Minister Biti said some of the clauses in the Labour Act were open to manipulation to the detriment of industrial viability.
He said Parliament was in the process of amending clauses in the Labour Act, which made bargaining between companies and trade unions difficult resulting in most companies opting to shut down operations.
“The Labour Act we have creates unsustainable bargaining agreements for firms, since employees are requesting retrenchment packages and wage increases when firms will be in no position to fully pay them without risking bankruptcy,” said Minister Biti.
He said Government was working on coming up with a new Labour Act which would grant wage increases to employees and payment packages on the basis of production levels and revenue generated by the concerned firm.
“We cannot have a situation whereby employees demand an increase in wages and retrenchment packages when the company is facing financial distress.
“Government will come up with a clause that will make wage increases and payment of retrenchment packages in relation to productivity levels and inflation rates in the country,” said Minister Biti.
He said Government would embark on a policy of cluster development in different regions in the country.
“In 2013, we intend to kick-start special development projects in Matabeleland province, we intend to industrialise firms especially in Bulawayo, since the manufacturing industry is now a museum.
“There is need to revitalise the timber industry in Matabeleland North since there is abundance of teak forests and Victoria Falls should be leveraged as a tourist destination,” said Minister Biti.
He said there was a need for the country to develop value addition than producing primary goods for exports.
Minister Biti said 90 percent of the cotton produced in Zimbabwe was being exported to China and Canada while the country had the capability to utilise cotton in the manufacturing industry.
Online Reporter