GOVERNMENT has made a u-turn on workers’ wages, revealing that it now supports productivity-based pay.
In a speech read on her behalf at an Employers’ Confederation of Zimbabwe (Emcoz) human resources indaba in Kariba last week, Labour minister Petronella Kagonye said the adoption of productivity-based wages was inevitable. Government has, alongside the labour movement, previously dismissed calls by the business sector to implement productivity-based wages.
“It is also imperative to note that we need culture change even in our remuneration determination system. We have to accept that the future points to a paradigm shift towards productivity-based wage determination systems,” Kagonye said.
“As you are aware, the Labour Amendment Act No 5 of 2015 has a provision which stipulates that productivity, among other factors, should be considered in wage determination processes. This move is to enhance the sustainability of our organisations and to promote a sustainable and equitable employee compensation system.”
The announcement was welcomed by employers. “This is a welcome development. We have been advocating for this but we have been roundly and soundly shot down,” Emcoz executive director John Mufukare said. “This is really a watershed moment. The ministry has agreed that we should now move to production-linked wages. We expect now that this will be implemented speedily.”
Kagonye said her ministry is working on speeding up the establishment of the National Productivity Institute.
“Let me take this opportunity to inform you that my ministry is working tirelessly to make sure that the institute sees the light of day,” she said.
“Working hand-in-hand with a tripartite body, the processes are underway to put in place a legal instrument to operationalise the much-awaited Zimbabwe National Productivity Institute.” — Staff Writer.