Mukuma calls on private sector to create decent jobs

Mukuma calls on private sector to create decent jobs
By Nomusa Michelo
Monday November 26, 2007 [03:00]

LABOUR minister Ronald Mukuma has called on the private sector to help the government by creating decent jobs. In an interview, Mukuma said that the government was doing everything possible to ensure job security and decent work in the country. “My appeal to the private sector is that, they are an important player in the sector, they should help the government by creating decent jobs for people,” he said.

Mukuma said that it was only by creating quality jobs that people would be able to take care of their families properly.

“Much as we want more investment, which will create jobs, we are interested in quality not just quantity of jobs,” he said. “It is only decent work which will enable people to meet their requirements and send their children to school. We are not only looking at quantity but quality of jobs being created.”

And opening a National Social Security Consultative Workshop at the Mulungushi International Conference Centre, Mukuma said the formulation of a national social security policy would provide an opportunity to focus on the guiding principles that emphasise members’ rights, good governance and fiduciary regulation of investment fund.

He said the government recognised the role that both public and private sectors had to play in the provision of social security to citizens.

“In this regard, it is our intention to encourage the development of policies that would facilitate the participation of the private sector and growth of supplementary schemes to compliment the national basic scheme,” he said.

Mukuma also said the government would also put in place measures to support the Public Service Pensions Fund and the Local Authorities Superannuation Fund (LASF) so that they remain competitive and viable.

“We therefore need to provide these schemes with a lifeline so that they are able to meet the minimum obligations to their members,” he said.

Mukuma said it was hoped that once the proposed social security policy was agreed upon, the government could effect legislative changes that would allow new entrants to begin contributing to the statutory occupational schemes in 2008.
He also said the social security sector as of November 2007 accounted for over K3.6 trillion in pension funds in the economy.

“The growth in pensionfunds brings with it challenges such as the absorptive capacity of the existing investment instruments and the need to support national development projects that would stimulate the creation of wealth, productivity and job creation,” he said. “The challenge, therefore, is how we can improve the governance structures in pension schemes so as to ensure the investment funds are managed prudently.”