SPEECH BY THE MIDLAND REGIONAL VICE PRESIDENT OF THE ZAMBIA FEDERATION OF EMPLOYERS
MR. KENNEDY NJAMBA AT THE TRIPARTITE CONSULTATIVE LABOUR COUNCIL (TCLC) MEETING HELD
ON FRIDAY, 13TH MAY 2022 AT MULUNGUSHI INTERNATIONAL CONFERENCE CENTRE.
THE GUEST OF HONOUR, MINISTER OF LABOUR AND
SOCIAL SECURITY, HON. BRENDA MWIKA TAMBATAMBA,
THE PERMANENT SECRETARY MINISTRY OF LABOUR
AND SOCIAL SECURITY MR. BORNIFACE CHAABILA
NALISHUWA
SENIOR GOVERNMENT OFFICIALS PRESENT
THE PRESIDENT ZAMBIA CONGRESS OF TRADE
UNIONS (ZCTU), MR. CHISHIMBA NKHOLE
THE PRESIDENT OF THE FEDERATION OF FREE TRADE
UNIONS (FFTUZ), MR. CHINGATI MSISIKA
SENIOR MEMBERS OF THE LABOUR MOVEMENT
PRESENT
THE ILO DIRECTOR FOR ZAMBIA MALAWI AND
MOZAMBIQUE, MR. GEORGE OKUTHU
MEMBERS OF THE MEDIA HOUSES
DISTINGUISHED GUESTS, LADIES AND GENTLEMEN
IT IS ALWAYS A PLEASURE TO BE ACCORDED AN
OPPORTUNITY TO MAKE SOME REMARKS AT AN
IMPORTANT MEETING OF THIS NATURE WHICH IS THE
FIRST TCLC MEETING IN THIS YEAR 2022 AND THE
SECOND TO BE HELD IN THE NEW DAWN GOVERNMENT.
HONOURABLE MINISTER, LADIES AND GENTLEMEN, I
BRING YOU WARM GREETINGS FROM THE EMPLOYERS IN
ZAMBIA. IT IS OUR HOPE IN THE ZFE THAT THIS YEAR WILL
TO A GREAT EXTENT BE DIFFERENT FROM THE PAST
THREE YEARS IN REGARDS TO THE DEVASTATING
EFFECTS OF THE COVID-19 PANDEMIC IN THE WORLD OF
WORK.
GUEST OF HONOUR, WE HAVE NOTED FROM THE AGENDA
OF THIS MEETING THAT AMONG OTHER ITEMS, WE WILL BE
DISCUSSING PENSION REFORMS AND IN PARTICULAR AN
ISSUE TO DEAL WITH NAPSA REFORMS IN THE CONTEXT
OF PARTIAL WITHDRAWAL . WE ARE PREPARED AS ZFE TO
DISCUSS THE NAPSA REFORMS AS WE ARE AWARE THAT
THERE IS AN OUTCRY FROM MEMBERS OF THE GENERAL
PUBLIC CALLING FOR THE REFORMS IN A MANNER THAT
THE SCHEME SHOULD BE DESIGNED IN A MANNER THAT
SHOULD BE BENEFICIAL TO THE MEMBERS OF THE
SCHEME NOT ONLY WHEN THEY HAVE RETIRED AND HAVE
A SHORT TIME TO LIVE. IT IS THEREFORE OUR DESIRE AS
ZFE THAT THE REFORMS TO BE UNDERTAKEN WILL BE IN
THE BEST INTEREST OF THE CURRENT AND WOULD BE
MEMBERS OF NAPSA.
GUEST OF HONOUR, DISTINGUISHED GUESTS LADIES AND
GENTLEMEN, IT IS OUR VIEW AS ZFE THAT THE FIRST
QUARTER OF THE YEAR 2022 WHICH ENDED ON 31ST
MARCH WAS AS BAD AS THE LAST QUARTER OF THE YEAR
2021 IN REGARDS TO BOTH THE COST OF DOING
BUSINESS AND THAT OF LIVING BEING HIGH IN THE
COUNTRY. WE SAW SOME WORKERS IN CERTAIN ENTITIES
RESORTING TO ILLEGAL STRIKE ACTION DURING THE
FIRST QUARTER OF THIS YEAR DEMANDING FOR
INCREMENTS IN THEIR SALARIES AND THEIR OUT CRY HAS
BEEN THAT THEIR CURRENT SALARIES ARE NOT
ADEQUATE TO ENABLE THEM PROVIDE A DECENT LIVING
FOR THEIR FAMILIES. SINCE THE COST OF DOING
BUSINESS IN THE COUNTRY IS STILL HIGH, EMPLOYERS
OUT THERE HAVE BEEN STRATEGIZING TO FIND
EFFECTIVE MECHANISMS OF LOWERING THE COST OF
PRODUCTION AND BRINGING DOWN THE PRICES OF
GOODS AND SERVICES WHICH EFFECTIVELY COULD LEAD
TO A REDUCTION IN THE HIGH COST OF LIVING.
UNFORTUNATELY THERE ARE CERTAIN COSTS THAT ARE
BEYOND THE CONTROL OF EMPLOYERS SUCH AS THE
HIGH COST OF BORROWING, HIGH COST OF ELECTRICITY
TARIFFS AND ENERGY IN GENERAL, HIGH EXCHANGE
RATES WHICH RAISES THE COST OF IMPORTED RAW
MATERIAL IN SOME BUSINESSES AND THESE COSTS HAVE
TO BE PASSED OVER TO CONSUMERS THUS RAISING THE
COST OF LIVING.
SO WHILE WE SYMPATHIES WITH OUR EMPLOYEES OUT
THERE ON THE HIGH COST OF LIVING IN THE COUNTRY
CURRENTLY, WE WISH TO REMIND OUR EMPLOYEES TO
ALSO REALIZE THE FACT THAT EMPLOYERS ARE EQUALLY
HIT WITH THE HIGH COST OF PRODUCTION AND ARE
THEREFORE, CONSTRAINED IN TERMS OF HOW MUCH
THEY CAN FREE FOR INCREASING EMPLOYEE’S
SALARIES. THERE IS A DESIRE IN A GOOD NUMBER OF
EMPLOYERS TO PUT MORE MONEY IN THE POCKETS OF
EMPLOYEES AND MOTIVATE IMPROVED PERFORMANCE
BUT WHEN OTHER COSTS OF PRODUCTION ARE BROUGHT
IN, THE TOTAL COST OF PRODUCTION GET VERY HIGH
AND PAUSES A BIG CHALLENGE TO MANAGE. WE TOOK
NOTE OF THE FACT THAT SALARY NEGOTIATIONS IN THE
FIRST QUARTER OF THIS YEAR WERE CHARACTERIZED
WITH HUGE DEMANDS FROM THE WORKERS IN REGARDS
TO THEIR DESIRED SALARY INCREMENTS. EMPLOYERS
FOUND IT HARD TO MEET THE WORKER’S HIGH DEMANDS
ON ACCOUNT OF INABILITY TO PAY. GUEST OF HONOUR,
LADIES AND GENTLEMEN, SALARY NEGOTIATIONS MUST
ALWAYS TAKE INTO ACCOUNT THE ASPECT OF
PRODUCTIVITY AND THE ABILITY OF ENTERPRISES TO
PAY. INDUSTRIAL PEACE AND HARMONY MUST BE THE
WAY TO GO AT ALL TIMES AND THE LEGAL PROVISION IN
COLLECTIVE BARGAINING MUST ALWAYS BE FOLLOWED
BY BOTH EMPLOYERS AND THE TRADE UNIONS. AS
EMPLOYERS WE ARE MINDFUL OF CUSHIONING OUR
EMPLOYEES AGAINST THE HIGH COST OF LIVING BUT THE
LEVEL AT WHICH WE CAN DO THAT IS DETERMINED BY
THE TOTAL COST OF DOING BUSINESS IN THE COUNTRY.
WE HAVE ALWAYS BEEN EAGER AS EMPLOYERS IN ZAMBIA
TO UPLIFT THE LIVINGS STANDARDS OF THE ZAMBIAN
WORKERS BUT ALL THE GAINS WE HAVE SO FAR BEEN
OFFERING TO OUR EMPLOYEES THROUGH SALARY
INCREMENTS HAVE BEEN ERODED BY THE HIGH COST OF
LIVING IN THE COUNTRY. IT IS THEREFORE, UNFAIR FOR
ANYONE TO THINK THAT EMPLOYERS HAVE BEEN
IRRESPONSIBLE OVER THE WELFARE OF THEIR
EMPLOYEES AND FOR THIS REASON , WE WISH
THEREFORE, TO CONDEMN ANY GROUP OF EMPLOYEES
THAT HAVE BEEN INVOLVED IN ILLEGAL STRIKE ACTION
AND ANY OTHER GROUP OF EMPLOYEES DESIRING TO DO
SO AS STRIKE ACTION IS NOT ONLY COSTLY TO THE
ENTERPRISE BUT TO THE WHOLE ECONOMY IN THE
COUNTRY ESPECIALLY THAT THE COUNTRY IS JUST ON
THE RECOVERY PATH FROM THE DEVASTATING EFFECTS
OF THE COVID-19 PANDEMIC. GUEST OF HONOUR, LADIES
AND GENTLEMEN, WHILE STILL ON THIS ITEM, ALLOW ME
ALSO TO MAKE A COMMENT ON AN ISSUE THAT HAS BEEN
EMERGING FROM WORKERS ENGAGED BY SUBCONTRACTORS
THAT SUCH CONTRACTS MUST BE
TERMINATED IN ORDER FOR THE EMPLOYEES TO HAVE
DIRECT EMPLOYMENT CONTRACTS WITH THE
CONTRACTING COMPANIES. IT MUST BE UNDERSTOOD
THAT SUB-CONTRACTING IS A MEANS OF ACHIEVING
EFFICIENCY AS IT PROMOTES INNOVATIONS,
SPECIALIZATION, QUALITY AND MOST SIGNIFICANTLY , THE
OPPORTUNITY FOR MORE PEOPLE TO EARN A LIVING . WE
IN THE FEDERATION THEREFORE, FAIL TO UNDERSTAND
WHY SOME WORKERS SHOULD DEMONIZE CONTRACTORS
AND THE ENTIRE CONCEPT OF SUB-CONTRACTING. WE
CALL ON EMPLOYEES OUT THERE TO TAKE TIME TO
UNDERSTAND THE EMPLOYMENT LAW IN ZAMBIA AND
LIMIT THEIR DEMANDS BASED ON WORKER’S RIGHTS
WHICH FORM THEIR CONDITIONS OF SERVICE AND NOT TO
MAKE DEMANDS THAT ARE OUTSIDE THEIR RIGHTS. WE
MUST AS SOCIAL PARTNERS UNDERSTAND THE
GOVERNMENT POLICY ON DECENTRALIZATION AND
SUPPORT TO MICRO SMALL AND MEDIUM ENTERPRISES (
MSMES ) . IT IS NO LONGER ABOUT BIG BUSINESSES ONLY
OR ALONG THE RAIL LINE BUT PROMOTION OF SMALL AND
MEDIUM BUSINESSES THROUGHOUT THE COUNTRY AND
OUTSOURCING IS ONE SUCH MECHANISM THROUGH
WHICH LARGE ENTERPRISES CAN SUPPORT MSMES. WE
MUST SUPPORT THE NEW DAWN GOVERNMENT’S
APPROACH OF ENCOURAGING FORMATION OF
COOPERATIVES BY THE ZAMBIAN PEOPLE AND ONE WAY
OF RECORDING SUCCESS ON THIS INITIATIVE IS
ENCOURAGING LARGE ENTERPRISES TO OUTSOURCE
CERTAIN OF THEIR FUNCTIONS TO THE COOPERATIVES
AND SUCH MUST INCLUDE OUTSOURCING OF HUMAN
RESOURCE FUNCTIONS.
GUEST OF HONOUR, LADIES AND GENTLEMEN ONE OF THE
ILLEGAL WORK STOPPAGES REPORTED DURING THE LAST
QUARTER ENDED 31ST MARCH 2022 AND WHICH WAS VERY
SHOCKING TO US IN ZFE CONCERNED THE EMPLOYEES AT
COLLUM COAL MINE INDUSTRIES LIMITED IN MAMBA
WHERE EMPLOYEES DECIDED TO GET A POLICE PERMIT
TO STAY AWAY FROM WORK IN ORDER FOR THEM TO
MEET AS WORKERS AND RESOLVE TO MAKE A CALL TO
THE EMPLOYER TO HAVE A GROUP OF MANAGERS HAVE
THEIR EMPLOYMENT CONTRACTS TERMINATED BECAUSE
THEY WERE ALLEGED NOT TO BE HELPING RESOLVE
CONCERNS THAT EMPLOYEES HAD BEEN RAISING WITH
THE EMPLOYERS AT THE COMPANY.
WHILE WE TOOK NOTE OF THE FACT THAT WORKERS’
COMPLAINTS ABOUT WORKING FOR LONGER HOURS
THAN WHAT IS STIPULATED IN THE LAW AND THEIR
CONCERNS ABOUT SAFETY WERE GENUINE AND NEEDED
TO BE ADDRESSED, WE WISH TO STATE THROUGH THIS
MEETING THAT POLICE NOTIFICATION OF A PUBLIC
MEETING DOES NOT IN ANY WAY EXCUSE ABSCONDING
FROM WORK, ANY MORE THAN CRIMINAL PROSECUTION
OVERRIDES INTERNAL DISCIPLINE.
FURTHER, WE WISH TO CONDEMN THE FACT THAT THEY
HAD TO PUT UP A DEMAND TO HAVE CERTAIN OF THEIR
FELLOW ZAMBIANS IN MANAGEMENT POSITIONS TO HAVE
THEIR EMPLOYMENT TERMINATED AND SADLY THE
COLLUM COAL MINE INDUSTRIES LIMITED MANAGEMENT
TOOK ACTION TO TERMINATE EMPLOYMENT OF FIVE (5) OF
ITS ZAMBIAN MANAGERS IN AN ILLEGAL MANNER AS
THESE TERMINATIONS DO NOT CONFORM TO THE
THREE(3) PRESCRIBED GROUNDS OF TERMINATION OF AN
EMPLOYMENT CONTRACT IN LINE WITH THE EMPLOYMENT
CODE ACT NO.3 OF 2019.
WE FIND SUCH DEMANDS FROM THE WORKERS TOTALLY
OUTSIDE WORKERS’ RIGHTS AND VERY ASTONISHING AND
UNFAIR TO THE FAMILIES OF THOSE ZAMBIAN MANAGERS
WHOSE EMPLOYMENT CONTRACTS HAVE BEEN
TERMINATED AT COLLUM COAL MINE INDUSTRIES LIMITED.
AS ZFE WE WISH TO TAKE THIS OPPORTUNITY TO ADVISE
EMPLOYERS OUT THERE THAT ANY FORM OF
TERMINATION OF EMPLOYMENT CONTRACTS OF ANY
EMPLOYEE WHETHER IN MANAGEMENT OR NON
MANAGEMENT POSITION, WHICH DOES NOT COMPLY
WITH THE PROVISIONS OF THE EMPLOYMENT CODE ACT
NO.3 OF 2019 AS HAS BEEN THE CASE AT COLLUM COAL
MINE INDUSTRIES LIMITED IS UNLAWFUL. EMPLOYERS
RESPONDING FAVOURABLY TO SUCH UN-WARRANTING
DEMANDS FROM ANY GROUP OF EMPLOYEES RISK
LEGAL ACTION BEING TAKEN AGAINST THEM BY SUCH
MANAGERS WHOSE EMPLOYMENT CONTRACTS GET
TERMINATED. GUEST OF HONOUR, LADIES AND
GENTLEMEN, IT IS ALSO SAD TO NOTE THAT WHILE AS
SOCIAL PARTNERS WE ENCOURAGE EMPLOYEES TO
UNIONISE, THE WORKERS AT COLLUM COAL MINE
INDUSTRIES HAD DECIDED TO BE UNFRIENDLY TO THE
MINE WORKERS UNION AND DECIDED NOT TO HAVE
ANYTHING TO DO WITH THE UNION. WE WISH TO REMIND
THE WORKERS AT THIS MINE THAT THEY CAN NOT
MANAGE EFFECTIVE SOCIAL DIALOGUE WITH THE
EMPLOYER WITHOUT REPRESENTATION FROM THE UNION.
THEY MUST THINK TWICE ABOUT THEIR UNION
REPRESENTATION AND WE URGE MUZ NOT TO RELENT ON
THIS ISSUE. ALLOW ME ON THIS NOTE AND ON BEHALF OF
MY FEDERATION TO COMMEND THE TWO UNIONS IN THE
MINING SECTOR THAT HAVE PLEDGED NOT TO ENGAGE IN
AN STRIKE ACTION DURING ANY OF THEIR NEGOTIATIONS
WITH THE EMPLOYERS IN THE MINING SECTOR BUT HAVE
INSTEAD PROMISED TO EMBRACE SOCIAL DIALOGUE AND
FOLLOW THE LAW IN COLLECTIVE BARGAINING.
GUEST OF HONOUR, LADIES AND GENTLEMEN, MAY I ALSO
USE THIS OPPORTUNITY TO RAISE A CONCERN ABOUT
THE ISSUE CONCERNING DEMANDS BY CERTAIN LABOUR
OFFICERS WITH PARTICULAR REFERENCE TO THE NDOLA
LABOUR OFFICERS ON SOME OF OUR MEMBERS
ENGAGING EXPATRIATE EMPLOYEES WHERE THERE ARE
VIEWS THAT THESE SHOULD BE ENGAGED IN POSITIONS
THAT REQUIRE CRITICAL SKILLS THAT CAN NOT BE FOUND
AMONG ZAMBIANS. WHILE WE DO NOT ARGUE AGAINST
THIS VIEW AS A WAY TO GO, WE ARE NOT AWARE OF ANY
LIST SO FAR PRODUCED TO OUTLINE CRITICAL SKILLS IN
ZAMBIA ON WHICH LABOUR OFFICERS CAN START USING
AGAINST EMPLOYERS ON THE SUBJECT OF
RECRUITMENT OF ZAMBIANS AND EXPATRIATES. WE HOLD
THIS VIEW BECAUSE THE EMPLOYMENT CODE ACT NO. 3
OF 2019 IS CATEGORICAL ABOUT HOW "CRITICAL SKILLS"
ARE TO BE DETERMINED. SECTION 65, REQUIRES THE
SKILLS ADVISORY COMMITTEE CONSTITUTED UNDER
SECTION 63 TO "PREPARE A LIST OF CRITICAL SKILLS".
SECTION 64 STATES THAT THE LABOR COMMISSIONER IS
CHAIRPERSON OF THE COMMITTEE, AND ZFE HAS A SEAT
ON THIS COMMITTEE. WE ARE AWARE THAT THE
COMMITTEE WAS CONSTITUTED SOME TIME AGO BUT HAS
YET TO BEGIN ITS WORK. THAT MEANS THEREFORE THAT
THERE IS NO LIST OF CRITICAL SKILLS AVAILABLE AT THIS
TIME, AND IT IS NOT OPEN TO ANY LABOR OFFICERS TO
DECIDE FOR THEMSELVES WHAT SKILLS ARE "CRITICAL".
THE CREATION OF THE LIST OF CRITICAL SKILLS OF
ITSELF WOULD STILL NOT GIVE POWER TO LABOR
OFFICERS TO QUESTION THE HUMAN RESOURCE
STRUCTURE OF AN EMPLOYER. WORK PERMITS ARE NOT
THE PURVIEW OF THE MINISTRY OF LABOR, AND THE
"ZAMBIANIZATION COMMITTEE" HAS NO STATUTORY
BACKING. SECTION 61 EXPLICITLY SUBJECTS ALL WORK
PERMIT ISSUES TO THE IMMIGRATION AND DEPORTATION
ACT NO. 18 OF 2010. CRITICAL SKILLS ARE AN INTEGRAL
PART OF THAT SECTION, BUT AGAIN, THERE IS
CURRENTLY NO LIST FOR THE LABOUR OFFICERS TO
PURPORT TO ENFORCE. UNTIL SUCH A LIST IS ISSUED, IT
IS THE IMMIGRATION DEPARTMENT AND NOT THE
"ZAMBIANIZATION COMMITTE" OR THE LABOR
COMMISSIONER THAT HAS THE STATUTORY MANDATE TO
MONITOR WORK PERMITS. WE CALL ON THE OFFICE OF
THE LABOUR COMMISSIONER TO SENSITIZE THE LABOUR
OFFICERS OF THIS PROVISION OF THE LAW AND ASK
THEM TO STOP HARASSING THE EXPATRIATE EMPLOYEES
AS IS THE CASE WITH THE NDOLA LABOUR OFFICERS.
SHOCKINGLY GUEST OF HONOUR, THE ASSISTANT
LABOUR COMMISSIONER IN NDOLA HAS EVEN GONE TO
THE EXTENT OF QUESTIONING THE INVOLVEMENT OF ZFE
IN ADVISING ITS MEMBERS ON ISSUES OF ENGAGEMENT
OF EXPATRIATE EMPLOYEES AND QUESTIONING THE
REPRESENTATIVE ROLE OF THE ZFE WHEN ZFE HAS A
LEGAL MANDATE TO PROMOTE AND PROTECT THE
INTERESTS OF ITS MEMBERS. WE FOUND THIS TO BE OFF
TARGET AND WE CALL ON THE OFFICE OF THE LABOUR
COMMISSIONER UNDER THE WATCH OF THE PERMANENT
SECRETARY TO SCHOOL THE ASSISTANT LABOUR
COMMISSIONER IN NDOLA ON HOW TO MANAGE
INDUSTRIAL RELATIONS ISSUES.
MAY I AT THIS POINT IN TIME WISH THE TCLC EVERY
SUCCESS AS WE DELIBERATE ON THE DIFFERENT
AGENDA ITEMS OF THIS MEETING.
THANK YOU FOR YOUR TIME AND MAY OUR GOOD LORD
BLESS US ALL.