Zim social contract dialogue stalls

Efforts to revive the Tripartite Negotiating Forum could hit a snag as parties appear to be failing to “compromise” on social contract principles, Business Weekly reports.

The TNF, a social dialogue platform that brings together Government, business, and labour to discuss socioeconomic matters was formed in 1998, initially as a voluntary forum, but later legislated through the Tripartite Negotiating Forum Act of 2019.

In June, a technical committee met in Mutare where the parties came up with positions, but sharp differences emerged over the national minimum wage, pricing of goods and services, and payment of wages in United States dollars, multiple sources said.

Labour demanded a minimum wage be negotiated at a national level and partly paid in forex, citing erosion of earnings due to inflation and exchange rate distortions.

The Government and labour, on the other hand, argued that negotiations for wages should be done at a sector level and “out rightly rejected the proposed blanket policy” of compelling companies to pay in foreign currency, the sources said.

The labour also raised concern over the “overpricing” of goods and services, blaming the business for “profiteering.” That position was supported by the Government.

The business, which negotiates under the Employers’ Confederation of Zimbabwe (EMCOZ), argued they were not getting enough foreign currency on the auction system and are resorting to the black market “to keep their products on the shelves.”

“The technical committee came up with positions from negotiators, which were supposed to be presented to the main TNF,” said one source who requested not to be named because is not allowed to talk to the press.

“But the meeting was postponed after the Finance Minister (Mthuli Ncube), who chairs the TNF failed to attend twice.”

“(But) . . . there was no convergence (when negotiators met in Mutare) and this gives credence to people who are saying that the TFN will not produce anything good.”

Other ministries, considered to be “key” to the TNF also failed to attend, another source said.

The Zimbabwe Congress of Trade Union (ZCTU) while the labour believed that the TNF would help in resolving some of the socio-economic issues, lack of seriousness especially from the Government “was a bit worrying.”

“While we still have hope that the TNF can deliver, lack of seriousness from the Government is making more people believing that it is useless platform; but we are just not utilising it,” ZCTU secretary Japhet Moyo said.

“I think we need to give it a chance.”

An official with the Zimbabwe Federation of Trade Union blamed the Government for “not taking the platform serious.”

The official said despite differences over the social contract principles, “we need to negotiate to find a compromise.”

EMCOZ president, Demos Mbauya, said the main TNF failed to convene the meeting after the government failed to attend.

“The draft outcome document produced by the technical committee in Mutare is currently pending before the main TNF meeting a date of which is to be advised by the chairman,” he said.

“The last TNF meeting could not take place due to lack of quorum; non-attendance of government representatives.

While the TNF sub-committees have been meeting over the past two years, the main wing last met in April 2020. Analysts had hoped that the reconvening of the TNF would help rebuild cohesion and bridge the mistrust gap between the Government and business.

Mbauya told this publication ahead of the Mutare meeting that the operating environment was “deteriorating and becoming hostile to normal business activities.

“The biggest challenge right now is that there is a trust deficit between Government and other social partners,” said Mbauya.

“There is consensus within TNF that we need to convene and dialogue to come up with a social contract specifically to address the issue of economic stability. We need to give dialogue and consensus building around major economic policy interventions a chance.

“As business, we are committed to play our part.”-ebusinessweekly