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Govt urged to invest in unemployment benefits

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ZCTU president George Nkiwane has urged government to invest part of the funds raised under its social security schemes in unemployment benefits.

ZIMBABWE Congress of Trade Unions (ZCTU) president George Nkiwane has urged government to invest part of the funds raised under its social security schemes in unemployment benefits.

VENERANDA LANGA

Addressing members of the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare on Monday, Nkiwane said although schemes like the National Social Security Authority (NSSA) were beneficial to retired employees, unemployment benefits were better as they cushioned workers in times of need.

“To us, unemployment benefits are the way to go because social security schemes are meant to cushion workers during the time of need,” Nkiwane said.

“As labour, we are not satisfied by this contributory scheme because we have been to countries where people do not need to contribute, and the State focuses on taxes and forms a comprehensive social security scheme where it takes responsibility in as far as provision of safety nets is concerned.”

Nkiwane said there was nothing wrong with those with a high income contributing to the welfare of other underprivileged members of society.

“What we do not want is an idea of having levy after levy.  To us labour – it is the responsibility of the State to come up with adequate social safety nets to protect citizens in times of need,” he said.

He said the ZCTU was in the process of organising a chamber of the informal sector to try and get them covered by social security schemes.

“We can formalise the informal sector by recognising its existence and providing necessary laws and everything that will make sure those engaging in that economic activity have facilities within which they operate from. You see women with babies being chased by the police for selling goods, but why not provide them with proper places to sell wares without harassment?”

He said countries like Mauritius and Ghana were good examples where people in the informal sector were covered by social security schemes.

The ZCTU boss had been invited by the committee together with his health and safety officer Nathan Banda to give an insight into how workers’ unions viewed NSSA and its operations.