Govt to set up salary institute | The Herald April 11, 2016
Abigail Mawonde and Melody Mashaire
GOVERNMENT is working flat out to expedite the establishment of the Zimbabwe National Productivity Institute whose mandate will be to promote productivity-related awards in industry. This was said by Public Service, Labour and Social Welfare Minister Prisca Mupfumira in a speech read on her behalf by the Permanent Secretary in the ministry, Mr Ngoni Masoka, at a validation workshop on wage structure and labour costs in Zimbabwe held in Harare last week.
Once established, the ZNPI is expected to come up with scientifically determined benchmarks to facilitate productivity-based collective bargaining.
“The provisions on collective bargaining now compel parties engaged in wage negotiation either at the works council (company) or at the employment council (industry) level to take into account at the foremost levels of productivity, setting remuneration levels,” said Minister Mupfumira.
“In order to enhance this provision, my ministry is working flat out to expedite the establishment of the Zimbabwe National Productivity Institute. The productivity institute when fully operational will promote productivity related rewards in industry as well as its measurement. The concept is to come up with scientifically determined benchmarks in order to facilitate productivity based collective bargaining.”
Minister Mupfumira said stakeholders had expressed concern that labour costs in Zimbabwe were relatively high compared to other African and Asian countries.
“This situation had negative impacts on employment growth, prices of goods and services as well as the competitiveness of local products on regional and international markets,” she said.
Minister Mupfumira said it was important for policy makers to analyse wage determination system in both public and private sectors and its impact in the economy. She said it was important that institutional and legal framework for wage setting are revamped to bring about remuneration that promotes productivity.
“My ministry which is responsible for labour administration has already started laying the groundwork for revamping the legal and institutional framework for wage determination in the country,” said Minister Mupfumira.
She noted that the Labour Amendment Act passed last year streamlined the issues of competitiveness and productivity into the wage determination processes. Minister Mupfumira said she was unhappy with the huge pay disparity currently obtaining in the country.
“Huge salary imbalances can send negative messages throughout the firm, weakening loyalty and eroding the talent pool.
“Such inequity also results in low staff morale and companies risk suffering from low productivity once employees are aware of this disparity,” she said.
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