GOVERNMENT has warned of potential negative effects of labour market flexibility stemming from the new Labour Act.
BY TATIRA ZWINOIRA
Speaking at the opening of the new ZB Bank headquarters in Avondale, Harare, last Friday, Finance minister Patrick Chinamasa said that the potential negative effects would affect both employers and workers.
His remarks came following a court application filed by the Employers’ Confederation of Zimbabwe challenging provisions of the new Labour Act.
“We are, however, aware of the potential negative effects of labour market flexibility for both employers and workers in the short term. The increase in flexibility can reduce worker security and lead to lower wages,” Chinamasa said.
This comes as the government is seeking to draft legislation for the Tripartite Negotiation Forum (TNF) that will formalise engagement between the government, employers and workers.
“This will help circumvent challenges where businesses suffer silently on the back of an unsustainable wage bill because of labour market rigidities.
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“I strongly feel this will help businesses realign their models in the short-to-medium term, and create employment opportunities.”
Through the proposed TNF legislation, government hopes to build sustainable enterprises and create labour demand for decent employment opportunities. Speaking at the same event, Public Service, Labour and Social Welfare deputy minister Tapiwa Matangaidze said the proposed legislation will let all three parties be more accountable.
“I am hopeful that we will have a piece of legislation that formalises our engagement in order for us to be more accountable and responsive to the socio-economic needs of our respective constituencies,” Matangaidze said.
“I would like to take this opportunity to assure business leaders here present of my steadfast commitment to ensuring that we create a conducive environment wherein each of the three partners will deliver their mandate effectively.”
Last Wednesday, the Employers’ Confederation of Zimbabwe filed an application at the High Court challenging the constitutionality of the Labour Amendment Act No 5 of 2015.
The law was amended as a stop gap measure after over 30 000 people had lost their jobs within a month following a July 17 Supreme Court ruling which allowed employers to terminate workers’ contracts on three months’ notice.
