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INDUSTRIALISTS have called on Government to speed-up the deliberations on the amendment of the existing archaic labour laws. This was the general consensus at the three-day Confederation of Zimbabwe Industries congress held in Mutare last week. The permanent secretary in the Ministry of Transport and Infrastructure Development, Mr Munesu Munodawafa in his presentation on ‘the role of road and rail transport in Zimbabwe’s economic revival and growth’ had highlighted that National Railways of Zimbabwe had a high cost structure, but could not retrench because of the existing labour laws which are costly to the employer.
Mr Munodawafa said as Government pushed for the revival of NRZ, its biggest dilemma was retrenchment and the high costs involved.
“There is clearly a need to address our existing labour laws as we are resuscitating our industry under Zim-Asset. NRZ has been hard-hit over the years.
They currently move about three-million tonnes a year, but are supposed to move about 18 million tonnes a year to remain fully operational. Their best was in 1991 when they moved about 12 million tonnes.
“Regardless of that, they are overstaffed with 8 000 employees, but cannot retrench because of the high cost of retrenchment. NRZ also has the most vocal labour union in the country so it is a huge dilemma. So they have been operating under a high cost structure.
“But the bottom line is that NRZ has to be recapitalised because the revival of the country’s rail network will have a multiplier effect in the economy and the country and the country as a whole as benefits of a sound rail system will in turn lower the costs of production in industry,” he said.
The parastatal is burdened with a cumulative debt of salaries totalling $55 million and the workers were being paid an average of 40 percent of their salaries.
CZI national council member, Mr Tafadzwa Choto said labour issues would remain the focal point of quandary as companies seek to retool, which is why Government has to expedite the labour laws reform.
“There is no doubt that what forced most companies into judicial management apart from stiff imports completion and failure to stay afloat and pay debts was the labour predicament.
“This has to be addressed quickly as we implement ZimAsset and revive our industry,” said Mr Choto.
On the congress resolutions it was agreed that the Cabinet committee coordinating the review of the labour laws must speed up the process, which was clearly a stumbling block for the recovery of most companies in the manufacturing sector.
Online Reporter