Speech by his excellency, mr. Rupiah bwezani banda, president of the republic of zambia on the occasion of the labour day celebration - 1st may 2009, lusaka.
April 2009
• Your lordship, the chief justice
• Your honour, the speaker of the national assembly
• Honourable minister of labour & social security
• Honourable ministers and deputy ministers
• The secretary to the cabinet
• Your excellencies, ambassadors and high commissioners accredited to zambia
• Permanent secretaries
• Service chiefs
• Your worship, the mayor of the city of lusaka
• President of the zambia congress of trade unions
• President of the federation of free trade unions of zambia
• President of the zambia federation of employers
• Distinguished ladies and gentlemen
• Fellow workers
This year’s labour day is very significant in that it is being held against the backdrop of severe economic challenges brought about by the current global economic crisis. It is also challenging for me in that i am attending it for the first time as republican president under such grave circumstances which are affecting many industries and threatening both job security and job creation.
I am profoundly grateful to the people of zambia for having elected me president to provide leadership in all aspects of our nationhood including protecting our industries, jobs and workers’ rights. I am deeply pleased to be amongst you, fellow workers, to commemorate this important day in the calendar of the workers of the world.
More than ever before, our country needs the solidarity of all its people, particularly the workers and employers. In this regard, it is critically important to protect the rights of the workers whose labour is necessary to sustain industries that generate employment.
This year’s theme: “economic recovery through respect for workers’ rights, good governance and job security” cannot, therefore, be more appropriate. It is a wake-up call to the realities of the economic down turn and the need for workers and employers to work together to ensure the quickest recovery of the economy for the mutual benefit of both parties. The theme is equally befitting because it is my conviction that by working together we can mitigate the impact of the economic melt down.
Fellow workers,
Let me take this opportunity to commend you for your sacrifices to maintain industrial harmony and hard work in the past year despite the many challenges we faced. I must salute the labour leaders for their honest and constructive leadership when they must be under extreme pressure to make demands for their members despite these challenges. I know that they are also under pressure to protect their members from investors who may be exploiting the economic downturn to deny workers what is due to them even when as employers they can afford.
Economic recovery
Distinguished ladies and gentlemen,
By emphasizing economic recovery, the theme reminds us of the fact that our country has not been spared by the global economic recession. We know that this problem started as a financial crisis in the united states of america some time last year but has now become a global economic crisis. This unfortunate development is undermining our economic achievements, particularly in the mining sector which is the mainstay of our economy.
The copper prices that plummeted on the world market from an average high of around us$8,900 per metric tonne in july 2008 to about us$3,000 per metric tonne in january this year, brought about operational difficulties in our mining sector resulting in the loss of thousands of jobs. The reduced foreign exchange earnings from copper exports consequently resulted in the rapid depreciation of the kwacha.
Distinguished ladies and gentlemen, fellow workers,
The effects of the global economic crisis have also been felt in other sectors of our economy such as agriculture, tourism and manufacturing. In the agriculture sector, exports, especially of horticultural products, have been negatively affected due to reduced demand for these products on the international market. The tourism sector has witnessed a decline in tourist arrivals resulting in reduced earnings. For the manufacturing sector, the depreciation of the kwacha has led to imported raw materials becoming expensive, resulting in reduced production and increased prices of goods and services.
On the other hand, the impact of the global economic crisis on our financial sector has so far been less severe as compared to what is obtaining in other parts of the world. Some countries have since experienced the collapse of financial institutions. It is worth noting that our financial sector is still relatively buoyant because of the measures my government has put in place.
Fellow workers,
With all these adverse economic trends, you may ask what your government is doing to mitigate the impact. As you are aware, this year’s national budget focuses on mitigation measures to address the job losses and also to enable our economy to recover in the shortest time possible.
Since the mining sector presents the most urgent challenge, government has put in place specific measures to reduce the cost of mining operations in order to avoid possible mine closures. These measures include the reduction of customs duty on heavy oil fuels which are widely used in mining; the introduction of value added tax deferment scheme on the importation of copper and cobalt concentrates to maintain and create more jobs in our copper smelters; and the removal of windfall taxes on copper earnings.
I am aware that the removal of windfall taxes has raised a lot of debate. However, i wish to emphasize that the rationale behind this decision is to enable the mines sustain their operations, expand existing investment and secure jobs.
Distinguished ladies and gentlemen,
With regard to the situation at the luanshya copper mine, which is currently under care and maintenance, government is working tirelessly to find other investors to operate the mine. Placing a mine under care and maintenance entails loss of jobs and revenue. It is for this reason that operators who find their mines to be unprofitable are encouraged to hand them over to government.
Given the current situation in the mining sector as a whole, government is considering the recommendation of the recently held indaba with regard to putting in place a taskforce to review the entire mining industry.
In the meantime, i would like to warn that government will not tolerate the tendency where employers arbitrarily lay off workers under the guise of the global economic crisis. I would, therefore, like to repeat my call to the tripartite consultative labour council to get fully involved in matters of possible company closures and lay offs.
Distinguished ladies and gentlemen,
As you are aware, zambia’s vision is to become a prosperous middle income country by 2030. In order to realise the vision, there is need to put our economy back on the recovery track. To this effect, government will intensify the implementation of medium and long term measures contained in the fifth national development plan.
Within the national development framework, government’s focus is to diversify the economy from the current dependence on mining, particularly copper mining, to other sectors such as agriculture, tourism and manufacturing.
Interventions aimed at promoting diversification include infrastructure development in order to open up and improve accessibility to the farming blocks, tourism sites and industrial parks in the multi-facility economic zones. In this regard, zambia recently hosted the north-south corridor conference at which us$ 1.2 billion was pledged by our cooperating partners. These funds will be used for development of infrastructure in transport and energy in the eastern and southern african region. There is no doubt that this infrastructural development initiative will improve our competitiveness.
Complementary but equally important measures being implemented to improve the economy include reducing the cost of doing business, providing support services and increasing investment promotion. Government will also facilitate the participation of zambian nationals in investment opportunities through the citizens economic empowerment fund.
Workers’ rights and job security
Fellow workers,
This year’s theme also emphasizes the need to respect workers’ rights and job security. The economic recovery and diversification that we are focusing on can only be realised if these rights are respected. Workers’ rights and job security are essential elements in ensuring high productivity.
Workers’ rights include the right to occupational safety and health, right to be heard before dismissal, right to go on leave including maternity leave, right to belong to a trade union of ones choice and right to collective bargaining. It is, therefore, only appropriate that as we celebrate this year’s labour day, we pay particular attention to safeguarding and respecting these rights.
Distinguished ladies and gentlemen,
Government has observed with concern the tendency by some employers to take advantage of the large supply of labour in the country to disregard the relevant labour laws and abuse workers’ rights.
It has also been observed that some employers engage in practices that undermine efforts aimed at promoting job security. Such practices include casualisation of labour and laying off workers as a first option in cost reduction.
Government will not tolerate the practice where employers deliberately violate workers’ rights. Since most of our workers appear not to be fully aware of their rights, i wish to call upon the labour movement to intensify workers’ education especially on the issue of basic rights at work.
The government is committed to the promotion of decent work. It is in this regard, that government, in collaboration with social partners, has been implementing the zambia decent work country programme since 2007. This programme has been identified as a means to promoting safe, secure, healthy and sustainable employment for men and women in zambia. I, therefore, direct the minister of labour and social security and urge social partners to ensure that this important programme is fully implemented.
Good governance
Distinguished ladies and gentlemen,
Allow me to turn to the issue of good governance in the theme. As we are all aware, democracy, good governance and economic growth are all inter-linked. This is why government, through the fifth national development plan, has included programmes aimed at enhancing principles of good governance such as constitutionalism, human rights, transparency and accountability, administration of justice and democratisation.
In relation to constitutionalism, it is gratifying to note that the constitutional review process has progressed very well.
With regard to transparency and accountability, government recently adopted the anti-corruption policy which defines new strategies to strengthen the fight against corruption.
Last year, government put in place a code of ethics for the public service to enhance public service delivery and guard against corrupt practices. In this light, i would like to appeal to the private sector to emulate government initiatives to rid our society of corruption.
Further, it should be noted that my government has acceded to the african union peer review mechanism under which zambia has offered herself to be peer reviewed.
Labour law reform
Distinguished ladies and gentlemen,
Our labour laws need to be reviewed in order to make them responsive to the prevailing socio-economic conditions. It is for this reason that government embarked on the review of these laws. In this regard, i am directing the minister of labour and social security to engage the social partners with a view to setting the time frame for the completion of the review exercise.
Labour representation
Fellow workers,
Zambia is very fortunate to have a labour movement and employers’ organizations that are committed to the workers’ cause. This is evidenced by their interest in helping government find solutions to socio-economic challenges and their commitment to maintaining industrial harmony.
In commending the performance of our labour movement and employers’ organizations, i wish to draw their attention to the growing number of our citizens who are entering the informal economy which poses its own challenges.
It is currently estimated that 88 percent of our workers are in the informal economy. This means that the majority of the zambian workers remain unrepresented by unions. Equally, the micro, small and medium entrepreneurs who are usually not members of employers’ associations also lack representation. The challenge before us, therefore, is to work out modalities of embracing them.
Fellow workers,
The history of labour day teaches us that the most important lesson that can be drawn from the commemoration of this day is unity of purpose. It is, therefore, the wish of my government to see a united and strong work force capable of contributing immensely to national development even in the midst of the current global economic crisis.
Challenges faced by the zambian labour force
Fellow workers,
As we celebrate this important day, let us take time to reflect on the challenges that we face while striving to contribute effectively to the socio-economic development of our country. This day can only be meaningful if these challenges are adequately addressed.
One such challenge is that of lack of adequate and appropriate skills. Zambia needs a highly skilled labour force in order for us to remain competitive globally. As government, we are in the process of reviewing the technical education, vocational and entrepreneurship training policy to improve skills development in the country. I would like to urge fellow workers to ensure that we continue developing and improving our skills.
Another challenge is that of poor work culture. There is need to develop a culture of hard work and dedication to duty. Every worker in zambia must put the interests of the country first. Only our collective effort towards high productivity will help us turn the economy around for the benefit of all zambians.
Distinquished ladies and gentlemen,
The most daunting challenge facing the labour force is that of hiv and aids. Current statistics show that the hiv and aids prevalence rate in zambia is still very high. We, therefore, need to seriously heed to messages of behavioural change to reduce the hiv and aids prevalence rate.
Zambia needs a healthy workforce to attain aspirations contained in the vision 2030. Institutions that have not yet developed hiv and aids workplace policies should ensure that such policies are formulated and implemented.
Conclusion
Fellow workers,
May i conclude by urging all of you workers to embrace a culture of hard work. I know that some of you will be awarded for hard work, honesty and improvement in your performance. To you, i say congratulations and urge you to keep up the good work.
I am fully confident that through close cooperation among the government, workers, and employers, we will overcome our current challenges and emerge stronger and more resilient than ever before.
I wish you a happy labour day.
Thank you and may the good lord bless our great nation.
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