adminLabour and Social Services Minister Paurina Mpariwa made the remarks yesterday when she officially opened the Institute of Personnel Management of Zimbabwe end of the year labour briefing.
Minister Mpariwa said that the challenging economic environment had brought instability in the labour market.
“Invaluable productive time is expended on settling industrial disputes while retrenchment of workers becomes a primed solution across all sectors of the economy,” said Minister Mpariwa.
“This is because business entities will be seeking to contain labour costs.”
She said that the high rate of prolonged negotiations was an indication of unhealthy standoff between employers and workers, which derailed productivity.
Minister Mpariwa posed the question to delegates whether the downsizing of operations and retrenchment of workers in the face of high unemployment levels was a sustainable solution to the problems.
“We have to consider the fact that the laying off of workers has detrimental effects not only on the affected employees but affected business,” said Ms Mpariwa.
“This is because the aggregate demand for goods and services shrinks while the State’s tax base is also affected.”
She said it was therefore evident that in the interest of all social partners in Government, business and labour they should pull in one direction guided by a common vision and understanding.
Ms Mpariwa highlighted that the only way the economy could grow would be by increasing labour productivity and enhancing the competitiveness of local goods and services.
“There is a need to increase efficiency in the production of good and services if our goods are to withstand competition from imports on the local market,” said Minister Mpariwa.
She also highlighted the existence of stable prices in the economy that has promoted industrial peace and harmony, which has reduced collective bargaining deadlocks.
Online Reporter