Daily Newsletter

New minimum wage has brought stability


Simon Masanga

THE Ministry of Public Service, Labour and Social Welfare plays a critical role in managing labour and employment matters in Zimbabwe. 

Over the years, significant strides have been made in strengthening the labour framework and improve industrial relations.

The Tripartite Negotiating Forum

One major milestone was the establishment of the Tripartite Negotiating Forum (TNF), a platform bringing together the Government, business and labour to address employment issues. 

Initially operating as a loose coalition without legal status, the forum gained legitimacy with the enactment of the Tripartite Negotiating Forum Act, launched by His Excellency, the President. To ensure neutrality and trust among stakeholders, the ministry established an independent TNF secretariat. 

This move addressed concerns of bias, as the secretariat was previously housed under the Labour Department. 

The secretariat now operates independently, under the guidance of an executive director, fostering trust among partners.

Thanks to these efforts, industrial actions and strikes have been significantly reduced, with stakeholders collaboratively addressing issues. 

For example, the recent gazetting of a minimum wage of US$150 (or its equivalent in ZiG) has brought stability to the labour market.

Labour Act reforms

In response to challenges such as those highlighted by the Zuva Supreme Court case, where many employees lost jobs on short notice, the Government undertook an extensive consultative process to amend the Labour Act. 

The revised Act, implemented last year, addressed numerous gaps.

However, two key issues remain unresolved: The issue around national employment councils (NECs) and the one on the minimum retrenchment package.

The laws governing NECs were deemed insufficiently robust. 

Principles to tighten these gaps have been submitted to Cabinet, with amendments expected mid-next year.

The amended Act also did not include provisions to protect employees during retrenchments. 

While we wait for wholesome amendments on that issue, a statutory instrument on the minimum retrenchment package will soon be gazetted to resolve pending cases before the Retrenchment Board.

Employment creation and policy development

Employment creation remains a national priority. 

Under the National Development Strategy 1, the ministry aims to create 760 000 new jobs. 

To support this goal, an employment department has been established to develop strategies and policies to attain that goal.

Zimbabwe has also embarked on drafting a national employment policy, with support from the International Labour Organisation. 

This policy, informed by extensive consultations with various sectors and stakeholders, is now in its final stages. 

A validation exercise is pending, and the policy will be submitted to Cabinet for approval by year-end.

Labour market information system

The ministry has also prioritised the development of a labour market information system (LMIS) to collect real-time data on employment trends. 

This system will provide critical insights, such as job creation statistics, sectoral shortages and skills demand. 

While Zimbabwe currently relies on quarterly labour market surveys by the Zimbabwe National Statistics Agency, the LMIS, which will be fully operational by 2025, will provide us with real-time market data, revolutionising labour market monitoring.

Case management system

To improve efficiency in resolving labour disputes, an electronic case management system is being introduced. 

With 10 provincial and 30 district labour offices, the system will enable centralised tracking of labour cases before the courts, ensuring timely resolutions. Previously, cases could take years to resolve, but this system will hold our officers accountable and improve service delivery.

The Ministry of Public Service, Labour and Social Welfare continues to drive transformative reforms in Zimbabwe’s labour sector. 

From strengthening industrial relations through the TNF to addressing critical policy gaps and leveraging technology, these initiatives are paving the way for a more stable and dynamic labour market.

 Simon Masanga is the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare. He was speaking to The Sunday Mail’s Theseus Shambare.

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