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Conrad Mwanawashe : Business Reporter

THE National Productivity Institute (NPI), which will implement productivity-based wage determinants, is expected to commence operations early next year. Currently the secretariat is being manned from the Ministry of Public Service, Labour and Social Welfare.“This institution should be able to open its doors early 2017. All work to get it going by January 2017 is in progress,” Deputy Minister of Public Service, Labour and Social Welfare Tapiwa Matangaidze said.The new Labour Act prioritises collective bargaining and the interests of business and employees as opposed to Government intervention.

The emphasis on collective bargaining takes into account productivity and competitiveness and this has resulted in the establishment of the NPI.

The NPI will promote productivity related rewards in industry through scientifically determined benchmarks in order to facilitate productivity based collective bargaining.

It will also to improve the flexibility of wage determination in the country.

The NPI is also expected to deal with the cumbersome dispute resolution process. Business has called on Government to streamline that process.

“There is strong need to repeal the dispute settlement machinery in the amendment and revert to the provisions before the Act was amended in August last year,” an industrialist told a Confederation of Zimbabwe Industries conference in Gweru recently.

The launch of the NPI is part of Government’s efforts to clean up the labour market under a strategy to improve the Ease of Doing Business in the country.

Some of the changes include that retrenchment laws have been streamlined by the provision of a set retrenchment package and provision of exemption for employers who are faced with financial challenges. The interests of business and employees are ensured.

Under the amended Labour Act employees packages should be paid timeously and undue delay in negotiations is avoided thereby eliminating unnecessary time loss and costs.

The employer can now retrench and prevent undue closure of business.

Employees can now be on “contracts” for set period established through Employment Councils or where there is no Employment Council through the Ministry of Public Service Labour and Social Welfare.

To date there are a few Employment Councils that have already set periods an employee can be on a “contract”.

The new labour laws promulgated are intended to augment justice, help promote a market economy, balance competing interests between business and unions (organised employees) and create a dynamic sustainable economy as well as promoting efficiency through an alternative dispute resolution system.