Labour Report for Congress 2010

needs rather than what he/she produces . Productivity based remuneration ensures we only eat that which we have either grown, made or killed and allows the economy to grow the national cake so that everyone gets a bigger slice.

th April 2010 NEC announced new minimum wages for the General Agriculture Sector. The agreement had 7 months back payment which we did not agree and we wrote a letter to the Minister of Labour objecting to the back payment. Back payments of wages in a hyperinflationary environment are reasonable in many respects. However, with the adoption of the multi currency system and the consequent massive reduction of inflation to a single digit the concept of back payment is absolutely unreasonable and contrary to sound economic policy. Irrational increases encompassing back payments will cause a lack of viability in all business sectors. It will cause farmers to sell off vital assets essential for agriculture production in order to pay these back payments and eventually result in closure of the business.

The response which we got from the Ministry was not good for the sector. She advised us to go back to NEC and try to find a solution. NEC together with the Trade Unions in agriculture are working together to make sure that employers pay all the back payments. Getting a fare hearing at NEC is not possible and taking the matter to arbitration, there are no sound economic awards from the arbitrators. The only possible way to solve these back payments is to challenge the agreement legally. So far the Union has visited 13 farms on strike were workers are demanding to be paid back payments. Most of the strikes were caused by Trade Unions working together with NEC.

Due to biased representation at NEC on the employers side the above two sectors wage negotiations were done by other employers who have nothing to do with the two sectors. Fraudulent agreements were entered together with the NEC and rightful employers have taken both purported employers and NEC to court. Members have been advised not to pay purported increases being circulated by NEC.

th of July 2010, however we are not in agreement with the effective date and we have since written a letter to the Ministry. 1st of February 2009 is the effective date for collection of NEC dues and we are seeking legal advice on whether or not it is lawful for statutory instruments to have retroactive effect.

NEC is dysfunctional and is not serving its intended purpose no service is given to either employers or employees in the industry. It is therefore suggested that the three Unions Presidents come with the true representation structure which will be taken to the Minister of Labour. Once a proper structure is in place all the problems which we are encountering will be sorted once and for all. Big cooperate companies in agriculture are considering pulling out of NEC, if all fails and form another NEC, or make ALB very strong and demand equal representation through ALB than going as individual employers at NEC.

NSSA still demands that contributions must be reviewed up-wards because if that is not done then NSSA will collapse.

However with the adoption of the mult-currency system and the consequent massive reduction of inflation to a single digit, the concept of increasing NSSA contribution from 6% to 8% and remove the ceiling is absolutely unreasonable and contrary to sound economic policy, including the Medium Term Recovery Plan. This irrational increase will break most of the farmers financially given that they are re-aligning their businesses.

It is our belief that reasonable contributions of 6% with a maximum ceiling do not hamper economic growth and that capitalization in this crucial period of economic recovery should be promoted.

Reasonableness should be the overriding critical factor and we would ask if it is reasonable to apply the same NSSA contributions standards and processes as applied in a hyperinflationary environment to present multi-currency system environment.

During the course of the year there were workshops organized by Government, EMCOZ and ZCTU through the ILO to re-look at the current Labour Act. Parties were asked to come up with amendments they wish to see in the Labour Act. CFU has participated in all workshops making sure that the new Act captures farmer’s interest. This is an ongoing exercise and we will continue to represent our member’s interests.

Thank you.