Zimbabwe least competitive in Sadc — Emcoz


ZIMBABWE is the least competitive country in Sadc in terms of remuneration competiveness and must adopt a new system to improve productivity, the Employers’ Confederation of Zimbabwe (Emcoz) said.


Gamma Mudarikiri
Own Correspondent

Emcoz executive director John Mufukare told Southern Eye Business  that the country must adopt a productivity-based remuneration system to increase output.

“Our remuneration system is the least efficient and that is why we are the lowest in terms of competiveness in Sadc,” Mufukare said.

He said the findings were based on a study carried out in the past two years and the report is set to be presented next week at a seminar to be held in Kariba.

Mufukare added that they will present findings to labour unions which will then be expected to make informed decisions and map a way forward to advocate for the adoption of a new system of remuneration.

The country has been using an inflation adjustment remuneration system which Mufukare criticised as inefficient, as it ignored productivity.

“Performance-based remuneration rewards output rather than effort,” he said.
“We don’t want to tie remuneration to an average which rewards non-performers.
“We want performers to be paid according to the performance of their companies,” he added.

He said that adopting productivity-based remuneration would reward workers according to company profits as opposed to the current system where employers and employees engaged in collective bargaining through the national employment councils and came out with a general sector specific wage.

The three-day seminar to be held from July 15 to 17 will seek also to engage stakeholders
on the adoption of productivity-based remuneration for local industry.

The productivity workshop will also compliment a new labour market agenda which Emcoz is formulating to enable firms to adapt to the multi-currency system.

The agenda is expected to be tabled before the next Parliament of Zimbabwe.

The majority of local manufacturing firms are facing low productivity owing to liquidity challenges and failure to recapitalise following years of hyperinflation which has led to company closures and job layoffs.

Industry capacity utilisation is expected this year to further dwindle to below 40% attributed to financial constraints and lack of investment in the sector.