Monday, March 26, 2012

Unions are negotiating under duress - FFTUZ

Unions are negotiating under duress - FFTUZ
By Kabanda Chulu
Mon 26 Mar. 2012, 11:58 CAT

TRADE unions are negotiating under duress unless government amends the industrial and labour relations Act that currently empowers employers to withdraw recognition agreement from a trade union by application to government, says FFTUZ national secretary Lyson Mando.

Speaking at the ZUFIAW professional negotiators' forum, whose objective was sharpening the skills of negotiators and building their knowledge base and expertise, Mando on Friday challenged the government to put in place labour reforms which recognise fundamental rights such as the right to join a trade union of employees' choice, right to collective bargaining and freedom to organise.

"These rights were diluted in 2008 by the MMD government which amended the Act to empower employers to initiate the process of withdrawing recognition agreement from a trade union by application to government. This sad development has resulted in compromising the power relations in the bargaining process as trade unions are currently negotiating under duress," Mando said.

"Employers are engaging in the take-it-or-leave-it mode of bargaining instead of the traditional give-and-take mode, and this is resulting in delays in concluding collective agreements."

He said the other amendment to the industrial and labour relations Act empowers the government to interfere in the trade union leadership by means of dissolving a duly elected union executive on suspicion of financial impropriety.

"This action is taken without regard to appropriate trade union structures where leadership is constitutionally accountable to. FFTUZ has been lobbying the new government to find ways of restoring the lost rights and we are hopeful the process initiated by the PF government in consultation with ILO to realign Zambian labour laws with international labour standards will soon be concluded and enacted into law so that Zambian workers are not subjected to poor wages and conditions of service."

And ZUFIAW president Cephas Mukuka urged Bank of Zambia Governor Dr Michael Gondwe to build on the spirit of mutual consultations and dialogue that was started by his predecessor Dr Caleb Fundanga.

"We have previously provided the central bank with informed insights about unsound activities in the banking sector which led to corrective measures being taken in time to save the industry. When workers fail to be whistle-blowers, what follows is the destruction of jobs and livelihoods due to corporate failures arising from greed," said Mukuka.

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Monday, November 01, 2010

(LUSAKATIMES) Govt will regret NCZ privatization-ZUFIAW

Govt will regret NCZ privatization-ZUFIAW
Sunday, October 31, 2010, 21:46

The Zambia Union for Financial and Allied Workers (ZUFIAW) has charged that government will regret the privatization of Nitrogen Chemicals of Zambia (NCZ). Egyptian Ambassador Salah El Sadek recently revealed intentions of a certain Egyptian company that is interested in giving government a private hand in running the NCZ.

The named company is said to have already submitted a proposal to the Zambia Development Agency (ZDA) for the takeover of NCZ. And the National Union of Commercial and Industrial Workers (NUCIW) president Seth Paradza has called on the government to hasten the privatization of Nitrogen Chemicals of Zambia (NCZ).

However, ZUFIAW president, Cephus Mukuka said that government should finance the plant to start running without any private help.

Mr. Mukuka said that government has the capacity to finance the NCZ but lacks political will to keep the company within the hands of Zambians.

He wondered why the ruling MMD government has constantly opted to sale off national property even when it could revamp the institutions and keep it as a public business.

He said that privatizing the NCZ at this moment will only result in a lot of joblessness and lawlessness in the country.

Mr. Mukuka has,therefore, advised government to focus on rebuilding the chemical plant rather than privatising it.

[ QFM ]

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Monday, October 26, 2009

‘Casualisation weakening trade unionism’

‘Casualisation weakening trade unionism’
By Chibaula Silwamba
Mon 26 Oct. 2009, 04:00 CAT

THE rise in casualisation and contract jobs is weakening trade unionism in Zambia, the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) has said.

In an interview in Lusaka yesterday, ZUFIAW president Cephas Mukuka said the trade union movement was worried about the increase in casual and contract workers especially in the banking sector.

“It’s very sad that jobs in the financial sector are now on contract basis. This is a very bad development which has to be addressed urgently,” Mukuka said. “Casualisation and contract employment will weaken trade unionism if not checked and reserved.”

He said the government and the trade unions were losing a lot of money because casual workers were not paying Pay As Your Earn (PAYE) tax and subscription fees to the unions.

“Us in the labour movement, our strength is in number of members but if workers are not on permanent employment, they can’t belong to the union,” Mukuka said.
He said banks in Zambia were culprits in exploiting Zambians by not employing them on permanent basis.

“This must come to an end. It’s very unfair to Zambians,” he said.
Mukuka further demanded the reinstatement of 38 Spar supermarket employees whose contracts were terminated.

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Sunday, February 08, 2009

Stop depending on PAYE as major source of income, Mwila tells govt

Stop depending on PAYE as major source of income, Mwila tells govt
Written by Kabanda Chulu and Fridah Zinyama
Sunday, February 08, 2009 8:18:31 PM

PATRIOTIC Front (PF) chairperson for labour Davies Mwila has challenged the government to stop depending on pay as you earn (PAYE) as its major source of income.And Zambia Union of Financial Allied Workers (ZUFIAW) president Cephas Mukuka has urged the government to stop the tendency of “kneeling down” when collecting taxes from the mines at the expense of Zambian workers.

Out of the K15.27 trillion 2009 budget, K11.7 trillion is expected to come from domestic revenue, K2.6 trillion from PAYE, K2.5 trillion from value added tax (VAT), K1.4 trillion from import duties and K1.6 trillion from excise duties, K308 billion from fuel levy while the remaining K2.7 trillion would be financed by cooperating partners under the Overseas Development Assistance (ODA).

But Mwila expressed disappointment at finance minister Situmbeko Musokotwane’s decision to marginally increase the exemption threshold from K600,000 to K700,000 while expecting to raise revenue from the suffering workers.

“We are disappointed because we expected a huge exemption threshold that can allow workers to look after their families well but this exemption is not much looking at the current economic situation and how will this government get those enormous taxes when the targeted people are lowly paid?” said Mwila.

“Also, the tax free exemption for terminal benefits is not much and will not help the pensioners and we expected it to be about K50 million and not K25 million.”

And Mukuka said the marginal increase in PAYE exemption threshold would reduce the purchasing power of Zambian workers.

“The tendency to depend on PAYE just because it is not negotiable is not good and why should government kneel down when getting taxes from the mines? Is it because they have to rush to PAYE and other consumer taxes? This dependence will erode the purchasing power of Zambian workers,” Mukuka said.

“We expected the exemption to be below K1.5 million and not K700, 000, especially that only a few people in formal employment will shoulder the burden of paying these taxes.”

He said the government should not just be a spectator in the national economy and entirely depend on workers’ taxes.

“The issue of diversification started with former president [Kenneth] Kaunda but the ones that succeeded him have turned economic diversification a political song by giving away all resources to foreigners,” said Mukuka.

“So instead of being a spectator and entirely depend on workers’ contributions, this government can do better to broaden the tax base by revamping industries such as Mansa Batteries, Luangwa Bicycle plant, Mongu Cashew Nut plant, Livingstone Motor Assembly, among other industries.”

Meanwhile, the Zambia Business Forum (ZBF) has described this year’s budget as pro-private and commended government for coming up with policies that supported the growth of the private industries. ZBF executive director Reginald Mfula said the budget had taken into account the high cost of doing business which had been a major concern for the manufacturing sector.

Mfula however said the budget had failed to clearly outline how the government was going to deal with the high inflation the country was currently experiencing since last year.

“I feel that government has also not addressed the issue of how it is going to deal with domestic debt,” he said.Mfula explained that inflation and domestic debt were cardinal issues that had a bearing on the performance of the economy.

“The budget is also not very clear about what government is going to do about the unstable exchange rate,” said Mfula. “We need a stable local currency for planning purposes.”

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Thursday, November 27, 2008

Mine job losses will worsen tension – Sata

Mine job losses will worsen tension – Sata
Written by Lambwe Kachali
Thursday, November 27, 2008 11:28:08 AM

PATRIOTIC Front (PF) president Michael Sata yesterday said the retrenchment of mine workers on the Copperbelt will worsen the tension in the country. And Sata said some problems that Zambia is facing in the mining industry are a result of former president Frederick Chiluba's corruption.

Meanwhile, Zambia Congress of Trade Unions (ZCTU) acting secretary general Ian Mkandawire said the laying off of workers at Bwana Mkubwa Mine Limited in Ndola should send a strong message to the government to hasten its programme of employment creation.

Commenting on the retrenchment of 286 workers by Bwana Mkubwa Mine Limited and the 26 workers at Chambishi Metals who have been sent on forced leave, Sata said President Rupiah Banda would never stop irritating Zambians.

Sata said Zambians' tempers had not yet settled following the disputed October 30 election and that it was unacceptable for them to be angered further with the miners' retrenchment.

Sata claimed that President Banda was aware of what was obtaining in the mining industry and it was his responsibility to prevent them from laying off the already under-paid workers. He said President Banda was aware that most mines would lay off workers, and instead of finding a lasting solution, he preferred to remain mute on the matter.

"When I met [late president] Levy Mwanawasa, he showed me correspondence between the mines and government, which indicated that unless government revise the taxation and other production conditions, it was going to be difficult for the mines to maintain their level of production and level of the people who are employed. Now that was given to the late president in writing and he [late president Mwanawasa] replied in writing, in which he gave certain conditions and that they were still negotiating," Sata said.

He said President Banda's beginning was disastrous and urged him to show leadership on important national issues.

Sata said it was sad that despite the high unemployment levels in the country, workers were still being retrenched and therefore made vulnerable.

"With the retrenchment on the Copperbelt, the tension is going to be higher; this is definitely going to heighten the tension. It will worsen the tension, increase crime, increase uncertainty, and make our economy very bleak because more people will be in the streets, jobless. And Rupiah Banda, I am sure he has now over-enjoyed his honeymoon. He should get out of that State House and work so that we get somewhere," he said.

Sata suggested that President Banda should scrap the National Constitutional Conference (NCC) so that the country could save the K400 billion allocated to the institution.

He said the K400 billion could be channeled to other sectors of the economy, which were on the verge of collapsing.

"Even Mr. [Leonard] Hikaumba, he is vice-chairman of NCC, is getting K18 million per month, a former mere civil servant, how can he speak for the miners? Majority of MPs with 22 from PF are in NCC, swimming in hefty money from NCC. How can they speak for the people?" Sata asked.

"My advice to government is to scrap the NCC for the time being and save K400 billion, because NCC won't produce the Constitution tomorrow. And since there is so much money involved, it can go up to 2020, because the people who are there would like by the time they come out they are billionaires. So we have to cut on unnecessary expenditure.

"The second unnecessary expenditure is to cut the number of government officials. Do we need two ministers in one ministry? Do we need two permanent secretaries in one ministry? Those are some of the difficulties we have. The current government is too big and very extravagant. It is extravagant to only 150 people plus few others. But the people on the ground are not being looked after."

Sata said the government should focus on creating more jobs and not to cause misery in the country.

"...Now Rupiah cannot rule trees and animals. In a country where you have the highest unemployment levels in the region, we are supposed to create employment. We are not supposed to create more unemployment because the more unemployed people become, the higher the poverty. We are supposed to reduce poverty not increase it," Sata said.

And Sata said Chiluba was also to blame for the current crisis because of the manner in which he privatised the mines.

He said Chiluba's corrupt tendencies had continued to impact negatively on the lives of majority poor Zambians.

"When these mines were sold in a very corrupt manner supervised by Chiluba, there was no re-investment in them. The agreement among the Republic of Zambia and the people who were coming to buy the mines was that before they are sold, government should first re-invest in them. Unfortunately, Chiluba did not want to respect the agreement and that's why you saw some few mining companies like Anglo-American and RAMCOZ left," he said.

"The whole privatisation process was diluted by Chiluba's corruption. All the companies which he privatised, there wasn't a single company which brought any benefits to the people of Zambia. And there was no way Chiluba was going to query the mining companies for giving slave wages to Zambian workers as well as failure to pay those who were retrenched their terminal benefits..."

Meanwhile, Mkandawire urged the government to establish what was happening in the mining sector. He also appealed to stakeholders to discuss the crisis in the mining industry in order to stabilise the issue of employment.

"Mining companies should not use the global financial crisis to get back at government as a way of expressing their displeasure over the mineral tax regime which government introduced this year. Mineral prices have affected mining operations all over the world but mining companies in other parts of the world have not rushed into shedding off labour as the case in Zambia," said Mkandawire.

Zambia Union of Financial and Allied Workers (ZUFIAW) president Cephas Mukuka said it was clear that Zambians had started feeling the negative impact of privatisation.

Mukuka observed that the shrinking workforce would now force the government to increase Pay as You Earn in order to mitigate revenue loss, which would arise.

"We are not against foreign investors but this development is a litmus paper for Mr Rupiah Banda to be on the alert because the worst is yet to happen," said Mukuka.

Bwana Mkubwa Mine Limited is reported to have retrenched 286 workers, while Chambishi Metals has sent 26 on forced leave, with Kansanshi Mine in Solwezi earmarking about 50 workers for retrenchment.

Recently, 259 Atlas Copco workers at Konkola Copper Mines (KCM) lost their jobs after the latter terminated the former's contract. The current global financial meltdown coupled with low production levels have forced the firms to start thinking of measures to mitigate the impact.

The imminent loss of employment at Atlas Copco came after KCM terminated the Maintenance and Repair Contract (MARC) worth at least US$1.2 million monthly that it held with Atlas Copco.

Among those losing their jobs were artisans in heavy equipment repair, power and auto electricians, boiler makers, stores personnel, site administrators and other administrative staff.

KCM has also started terminating the contracts of employees on fixed-term contracts.
Well placed sources at Mopani also revealed that 879 employees engaged by contractors at two different shafts had been retrenched as of last week.

Luanshya Copper Mines has also laid off eight expatriate workers as a way of saving costs in the wake of the global financial crisis.

National Union of Miners and Allied Workers Union (NUMAW) president Mundia Sikufele said the union had asked the mining companies to get back to the drawing board to see how they could cut on costs without pruning workers.

Mine Suppliers and Contractors Association president Fanwell Banda expressed fear over the threat that the fall in the copper prices would pose to suppliers.

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