FACED with a rapidly deteriorating economy characterised by hyperinflation, a weakening local currency against the United States unit and severely reduced productivity, employers will meet in Mutare later this month to look at ways of saving jobs.
This comes at a time companies, including financial institutions, have been retrenching workers to stay afloat in an extremely tough economic environment.
Year-on-year inflation has breached the 300% mark. More than 300 workers in the financial sector have been retrenched in the last two months alone.
The issue of trying to prevent largescale retrenchment of workers will be under the spotlight at the Employers’ Confederation of Zimbabwe (Emcoz) Collective Bargaining Summit for 2020 which be held in Mutare from November 20 to 23.The theme of the summit is Saving Jobs.
“This bipartite workshop aims at knowledge sharing and capacity building of Zimbabwe social partners and relevant stakeholders on the link between productivity, competitiveness and economic sustainability in the turbulent Zimbabwean economy. The economy is in turmoil with some economists calculating inflation on a year to year basis at over 500%,” Emcoz said in a statement.
“As was to be expected, workers are agitating for an increase in remuneration to cushion them against the rising cost in living. Employers, on the other hand, plead incapacity to absorb any further increases in the cost of production without passing it on to the consumer, thereby further fuelling inflation. The nation fears a return to 2008. This summit will focus on how to fund the wage increases that workers are agitating for without destabilising the economy even further and bringing about ‘unintended consequences’.”
The summit will be held to meet several objectives, which include sharing knowledge and building capacity of Zimbabwe’s social partners and relevant stakeholders on the link between productivity, competitiveness and economic sustainability in Zimbabwe, to identify some of the causes of monetary supply growth and brainstorm ways of addressing them, to establish the link between earnings and productivity to avoid the mismatch and to agree on recommendations to guide Collective Bargaining 2020.