‘Labour Act review to excite investors’
ZIMBABWE is likely to create an investor friendly environment through the amendment of the Labour Act, which will in turn reduce job losses in the country, an expert has said.
The Government is in the process of amending the labour law aligning it with the provisions of the new Constitution.
In an interview on the side-lines of an annual meeting on labour organised by a Bulawayobased consultancy firm, Stratways Management Consulting, the director Mr Davies Ndumiso Sibanda said:
“Generally, the picture is that there is going to be creation of investor friendly environment. The labour laws are going to be user-friendly to the investors but the trade unions may not like some of the provisions.
“For example, the contracts on employment might not be protective on the workers as they are now and the minimum conditions of service might be left of the parties in some cases,” he said.
Mr Sibanda said the review process would now provide clear guidelines and thus bringing clarity on what has been happening previously.
“Cross appeal will now address the grey areas, which used to give parties challenges. For example, in the past it was difficult to serve purpose on individuals who are avoiding to receive the Labour Court paper, but now the procedure is clear as they can now be served even by leaving them at the employee’s place of residence; for example, by tying them at the door,” he said.
In the past, the economy in Zimbabwe saw a number of companies scaling down operations resulting in thousands of people losing jobs.
“As the economy is yet to fully recover, we are likely to see retrenchment continuing but at a slow rate than in the previous year. The economy is likely to ride on investor confidence by the international community as a result of the new political dispensation,” he said.
Mr Sibanda said while the creation of the Special Economic Zones (SEZs) was good, there was a chance that application of the labour laws by investors in the designated areas might be visible to the disadvantage of the workers.
“This was because most investors do not like labour laws that are restrictive,” he said.
On the capacity of companies to increase salaries, he said:
“The issue is a mixed bag. Very few companies are doing well. However, many are unlikely to give an increment as they are battling with wage arrears. Some employers are doing well but the thing is they don’t just want to pay.”
Owners of business, human resources managers, administrators and trade unionists from across different parts of the country attended the meeting. — @okazunga