IT seems that government does not seem to care about workers. If they did, why would they continue to introduce policies that leave workers vulnerable to potential job losses?
NewsDay Comment
This was the same thing that happened in July 2015, when one Supreme Court ruling concerning two managers at Zuva Petroleum was used by several other firms as a basis to fire workers. Estimates put the job losses as high as 30 000 at the time.
As such, with Finance Bill No 3 of 2019 currently being debated in Parliament, employers are basically given a carrot in the form of tax cuts and incentives to actualise measures in the 2020 National Budget to support youth employment.
These include a tax credit of $500 per month per employee; raising the tax threshold from $700 to $2 000; reviewing the tax free bonus from $1 000 to $5 000; and decreasing from 25% to 24% the tax on the taxable income of companies, trusts and unincorporated businesses.
While not proposed in the Bill yet, the 2020 National Budget proposed increasing the minimum wage to $2 000 for new employees.
But, it’s the stipulation of what companies would have to do to access these incentives and tax breaks that threatens the jobs of existing employees, hire people aged 30 and below.
Of course, employers say that the tax cuts and incentives are too small for companies to retrench or fire more experienced workers. However, in an economy where businesses are losing revenue daily, it is not hard to assume companies are looking for any new sources of income, no matter how minute, to stay open.
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Which is why it is important to ask if government cares about workers?
Treasury has already introduced the harshest austerity measures, arguably, since independence. As a result, workers already have to deal with hyperinflation where prices are changing faster than a pair of underwear, increased taxes and increases in the prices of government’s basic services.
Further, the austerity measures brought back a devaluing local currency that is technically worthless and is causing businesses to price their goods according to the parallel forex market to preserve value.
Which is why it is weird that, moreover, government wants to impose a Bill that offers tax breaks and incentives to companies that have a history of working for their own bottom line.
Already, in January, when things were relatively better workers embarked on a three-day stayaway that saw government lose significant amounts of revenue, mostly, through value added tax. So, with a 2020 that is promising less than before, government should be very careful on how it treats its citizens.
President Emmerson Mnangagwa seems to get this, which is why this past Saturday he warned of a repetition of what transpired in January.
If a worker is struggling to eat regularly or even at all, pay school fees, source fuel, meet rising government and council costs, face rising healthcare expenses, deal with increased prices of basic commodities, a popular uprising is a certainty.
