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Oliver Kazunga Senior Business Reporter—
WORKERS’ unions are unhappy with the recommendation in the Special Economic Zones (SEZs) Bill to exempt businesses operating in the zones from the application of the Labour Act. SEZs are geographical areas administered by one oversight management body offering special trade incentives to firms that establish themselves in the designated zones.

Parliament has endorsed the recommendation to exempt the Labour Act application to investments under the SEZs. It noted the recommendation took into consideration the need to stimulate development by attracting local and foreign direct investments in areas under the SEZs concept – in line with standard practice in SEZs worldwide.

The Zimbabwe Congress of Trade Unions (ZCTU) secretary-general, Japhet Moyo, said exempting the application of the Labour Act in the SEZs does not promote social justice at the workplace.

“As ZCTU, we’re disappointed by the portfolio committee’s views to exempt the application of the Labour Act on investments that fall under SEZs,” he said.

“In the first place, to prospective investors, it’s not about them worrying about stable wages and employment flexibility. They’re worried about the security of their investment.

“Exempting the application of the Labour Act on investments under the SEZs merely entails that there’ll be no social justice at the workplace as the employer reserves the right to hire and fire. Under the Labour Act, Section 2 seeks to promote social justice at the workplace.”

The Zimbabwe Energy Workers’ Union general-secretary, Martin Chikuni, echoed similar sentiments saying the recommendations by the parliamentary portfolio committee were retrogressive as far as improving the terms and conditions of the working class in the country.

“As a labour movement, we don’t buy the committee’s recommendations suffice to say we weren’t consulted before the recommendation was made,” he said. Bulawayo-based labour expert Davies Sibanda said exempting the applicability of the Labour Act in SEZs was tantamount to straining labour relations between the investors and the workers.

“It (exempting the application of the Labour Act) can be done but it’s of very limited value for the simple reason that Section 65 of the Constitution has protected labour rights,” said Sibanda.

“If you deprive people of their rights, which is against the dictates of the constitution, it’ll become expensive as they (workers) will simply walk to the Constitutional Court to demand their rights and that will complicate labour relations.”

He said if there are issues in the Labour Act that do not promote economic development, they should be addressed rather than completely “ousting” the Act from being applied in the SEZs. However, the Affirmative Action Group national vice president Sam Ncube said stakeholders should not bother much on labour laws as that could scare away potential investors.

“What’s critical at this juncture is to woo the investors into the SEZs. Let’s not bother ourselves much on such modalities because if we start fighting regarding such laws, that has a potential to scare away potential investors.

“Such laws can be discussed and repealed as we move along; what’s important now is to make those people (investors) come in,” he said. Locally, Ncube said, labour is expensive compared to regional countries and thus Zimbabwe needs to be flexible and see how the economy can be revived.

“If we start talking about the Labour laws under the SEZs, it’s like we’re taking the cart before the horse; for now let’s concentrate on wooing investors.” Ncube said Zimbabwe should understand that it is not the only country seeking investment.

“So, if we start making noise on certain issues those potential investors into the country will simply walk away and invest elsewhere,” he said. The government envisages that the setting up of SEZs will go a long way in giving impetus to economic growth through enhancing Zimbabwe’s competitiveness, stimulating demand, improving production efficiency, employment generation, better resource allocation and export expansion.