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Cabinet has agreed on reforms to the country’s Labour laws that will introduce productivity linked wages, a Cabinet Minister has said. Industry and Commerce minister Mike Bimha said the reforms took into account current economic challenges that have affected productivity levels in most companies.

“Approval was given for labour law reforms that will introduce efficiencies in the economy and measures that will introduce productivity at the firm level,” he said.

“Further, that collective bargaining should be at company level so that wages and salaries agreed on are realistic and take into account productivity levels at company level.”

Minister Bimha said government had also taken a decision to curtail excessive wage bills in parastatals and local authorities.

“Cabinet also emphasised the need to undertake reform exercises which includes adjustment downwards of the parastatals and local authorities’ wages and salaries as the current wages and salaries levels are not only costly to the ordinary citizens but also costly to companies through levying high rates, fees and other charges to sustain the high wage bill.”

With the economy struggling to grow due to a myriad of challenges, business has been clamoring for the need to change remuneration structures.

But Zimbabwe’s trade unions have said they would resist moves to adopt productivity linked wages.

They argued that Zimbabwe was not yet ready for productivity-linked wages and insist on maintaining current poverty datum line (PDL)-linked salaries, currently estimated at over $500. – New Ziana.