THOSE who cannot afford to pay the revised minimum wages should not employ domestic, shop or general workers so that they do the work themselves, Minister of Labour and Social Securities Fackson Shamenda has said.

Mr Shamenda said people claiming to be ‘too poor’ to pay maids and other workers who fall under the revised minimum wage category should do the menial jobs themselves. He said this in Parliament yesterday during questions for oral answer.

Mr Shamenda said this in response to Mafinga member of Parliament (MP) Catherine Namugala (MMD) who asked how low income workers such as teachers will afford to pay their maids following the revised minimum wage.

He replied that the Patriotic Front (PF) government has an obligation to protect the interest of all workers, especially the marginalised. Mr Shamenda said most employers can afford to pay workers the revised minimum wage but are just trying to be selfish.

He said Government has not received meaningful submissions from the Zambia Federation of Employers (ZFE) over the revised minimum wage. “This government will not allow employers to continue paying workers slave wages. When are we going to become a humane society?

“We are aware that most of the people who are complaining get a salary of K20 million per month and 15 percent of that is K3 million which can enable them to employ six maids. And we are also aware that some people get K750,000 as an allowance for working out of town per night and yet they are against the minimum wage,” he said.

Mr Shamenda said big companies and individual entities continue to frustrate vulnerable workers. He maintained that Government has no apologies to make over the revised minimum wages. Mr Shamenda revealed that the ministry has also engaged the International Labour Organisation (ILO) to assist in reviewing and overhauling all labour laws in conformity with the prevailing living standards.

Earlier, Deputy Minister of Labour Rayford Mbulu told the House that the ZFE proposed a 15 percent increment on the previous minimum wage of K250,000 for domestic workers. Mr Mbulu, however, said the Minister of labour is empowered by law to ultimately determine the minimum wage after consultations.

Meanwhile, the Zambia Congress of Trade Unions (ZCTU) and the Copperbelt University Students Union (COBUSU) have separately welcomed Government’s decision to revise the minimum wage. ZCTU secretary-general Roy Mwaba said the revised minimum wage is one of the tools Government can use to ensure shared prosperity.

“ZCTU has the mandate to fight for living wages and it can be acknowledged that even the revised rates of the minimum wage do not meet the tenets of a living wage,” Mr Mwaba said. He said the ZCTU does not believe that increasing the minimum wage will always lead to loss of jobs.

Mr Mwaba said the relationship between minimum wages and unemployment is an issue that requires deeper analysis with empirical evidence to show the correlation between the two. He, however, noted that there was little consultation by Government with other stakeholders.

COBUSU president Thompson Luzendi said the students are happy with the increase of the minimum wage. “We are extremely disappointed and shocked with the negative reactions exhibited by some members of the public against Government’s decision to increase the minimum wage,” Mr Luzendi said.

He said most Zambians are happy with the revision because poor workers have been exploited in the past. “We also appeal to the many poor Zambians to support the revised minimum wage and also to support the current Government on this matter because it’s us the poor people who are affected. This is a pro-poor law,” Mr Luzendi said.

[Zambia Daily Mail]

More than K5 billion worth of maize has gone to waste at several storage depots in Mkushi district, over the past 6 months.

Mkushi District Commissioner (DC), Christopher Chibuye, told ZANIS that more than 148,000 by 50kg bags of maize had been destroyed in various parts of the district as the grain had become rotten due to poor storage conditions.

Mr Chibuye stressed that the matter deserved serious consideration by the District Development Coordination Committee (DDCC), adding that there was need to address the challenge of inadequate storage facilities.

He elaborated that from among the affected depots, 14,570 bags were destroyed at Tuyu, 272,050 at Tazara Corridor, 1,067 at Milombwe and 1,765 at the Farmers Training Centre (FTC) depots.

Mr Chibuye said that there was need for the District Council to help facilitate for land as well as infrastructure premises to accommodate private sector investment into ventures such as storage infrastructures.

He reiterated that Government had been consistent in encouraging private sector participation in storage infrastructure, saying such a move was aimed at complementing the existing Food Reserve Agency (FRA) depot network.

In a related contribution, Mkushi District Cooperative Union (MKDCU) General Manager, Harrison Kalota, has called for urgent attention to address challenges pertaining to maize storage at depots.

Mr Kalota charged that the FRA performance in this regard had not been impressed over the past 12 months, saying that more maize had gone to waste than in previous years.

He said the situation required interventions that would adequately address the problem with focus on the long term.

And Mkushi Council’s District Planning Officer (DPO), Chabala Mulundu, disclosed that three investors had recently indicated their interest in investing in grain storage infrastructure.

Without disclosing the identities of the investors, Mr Mulundu explained that talks were underway between the three investors and the local authority.

He said he was hopeful that arrangements could be concluded soon, saying the council was eager to court as many interested parties as possible in the quest to attract investment into ventures such as ware houses and other storage infrastructure.

ZANIS

Former Workers of the defunct Zambia Airways are still living in the dark as to when government will pay them their terminal benefits following the liquidation of the company in 1994.

On December 24, 1994, on the eve of Christmas, Brigadier General Godfrey Miyanda then Republican vice-president announced that Zambia’s flag carrier, Zambia Airways had been liquidated leaving its employees jobless and some homeless.

Kennedy Phiri, who is among the hundreds of Zambia Airways workers who were thrown on the streets after the liquidation of the company, said they have not been paid their benefits despite assurances from the successive governments to do so.

He said the late former President Dr. Fredrick Chiluba assured the ex-workers after liquidation that they would be paid their benefits from the money realised from the sale of the Airline’s assets which he said never happened and after his reign, all successive governments have kept on promising.

Mr. Phiri explained that life has not been easy for ex-Zambia Airways workers as they had not been served with any form of notice ahead of the closure adding that the closure came as a shock to everyone who was caught unprepared to leave employment.

Mr. Phiri who now resides in Chainda Compound has since appealed to President Michael Sata to help the ex-workers who he said are living as destitute while others have died without getting their benefits despite their service to the nation.

Zambia Airways was founded in 1964 as a subsidiary of Central African Airways and went under in 1994 leaving its workforce in dire straits.

ZANIS

The Institute of Directors of Zambia has urged Government to speed up the reconstitution of boards for state-owned enterprises to ensure sustainable and effective management of resources in the affected companies.

Institute president, Julu Simuule, noted that some state-owned enterprises have been running without boards for some time now following Government’s move to reconstitute their boards, adding that the situation has made it difficult for the affected managements to effect decisions in a transparent and accountable manner.

Mr Simuule stated that whilst recognizing that boards in the state-owned enterprises are rightly reconstituted, the pace at which this is done is critical for timely decision making and enabling those charged with governance duties to effectively and legally discharge them.

He said in a statement made available to ZANIS in Lusaka today that corporate governance should be seen as a system of monitoring and guidance meant to curb mismanagement of the concerned institutions.

Mr Simuule, however, commended Government for its undertaking through its line ministries, to reconstitute boards of many state-owned enterprises, statutory bodies and other corporate entities in the public domain in a bid to make them more efficient, transparent and accountable.

He said this institution promotes sound corporate governance principles and ethics in order to ensure proper management, control and accountability for affairs of public and private enterprises in the country and in the process, preserve and secure the interests of all stakeholders.

Mr Simuule also applauded the initiative taken by some organisations to advertise positions for potential board members in the press, saying this is a good concept which promotes efficiency, transparency, effectiveness and accountability in the conduct of good corporate governance practices by such boards.

ZANIS

IMF Executive Directors have commended the Zambian authorities for their sound macroeconomic management and welcomed Zambia’s strong economic performance in recent years. This is contained in a press release made available to the media by the Ministry of Finance.

According to the statement the IMF Directors noted that while the outlook for the economy is favorable, it is subject to risks arising from volatility of copper prices and delays in implementing measures needed to meet the 2012 budget deficit target. To safeguard macroeconomic stability and to make growth more inclusive, they stressed the need for continued commitment to strong policies and implementation of structural reforms.

Directors agreed that fiscal policy should aim at prioritizing growth enhancing expenditures and mobilizing revenues to create the space needed to achieve the fiscal objectives. They emphasized the importance of implementing reforms to maize marketing and pricing, fertilizer subsidies, and public sector pension funds.[pullquote]They emphasized the importance of implementing reforms to maize marketing and pricing, fertilizer subsidies, and public sector pension funds[/pullquote].

These measures should help restore fiscal sustainability and correct market distortions that have created overdependence on maize production. Directors noted that revenue enhancing measures, including strengthening tax administration and reducing subsidies and incentives will also be critical for achieving the fiscal targets. In addition, the reinstatement of the automatic petroleum price adjustment mechanism and the implementation of the multiyear electricity tariff framework are needed to minimize fiscal risks associated with the current pricing below cost recovery.

Directors underscored that public financial management reforms are essential to improve budgetary planning and execution and prioritizing spending. They welcomed the plan to complete the implementation of the Treasury Single Account and urged the authorities to continue to strengthen their investment and debt management capacity. These measures would support the planned scaling up of infrastructure spending and increased use of non-concessional financing.[pullquote]They welcomed the plan to complete the implementation of the Treasury Single Account and urged the authorities to continue to strengthen their investment and debt management capacity[/pullquote]

Directors endorsed the plans to further enhance the monetary policy framework in support of a low inflation objective. They encouraged the authorities to remain vigilant to inflationary pressures and tighten policy if needed. Directors agreed that the introduction of the monetary policy rate, combined with use of a broad set of economic indicators to assess the monetary policy stance, should make monetary policy more flexible and forward looking and enhance liquidity management.

Directors noted that the flexible exchange rate regime has helped Zambia weather external shocks. They highlighted that increasing the reserve coverage would also provide an added buffer.

Directors welcomed the authorities’ efforts to strengthen the financial sector and improve access to financial services. They urged the authorities, however, to work closely with key stakeholders to minimize any risks to the financial sector stemming from the implementation of the new minimum capital requirement for commercial banks and the redenomination of the local currency.

Directors emphasized that structural reforms will be critical to achieve economic diversification and make growth more inclusive, in order to tackle the high rate of poverty and unemployment. In this context, they encouraged the authorities to formulate a broad based reform strategy for the agriculture sector, and to strengthen formal sector development, in particular by improving the business climate[pullquote]In this context, they encouraged the authorities to formulate a broad based reform strategy for the agriculture sector, and to strengthen formal sector development, in particular by improving the business climate[/pullquote]

Zambia has achieved high and sustained growth and macroeconomic stability over the past decade, but poverty remains high. Real gross domestic product (GDP) growth averaged 5.2 percent in 2000–10 (or 3.1 percent per capita); inflation declined from 30 percent to single digits; debt declined sharply; and international reserves increased to comfortable levels.

Economic conditions remain favorable and there has been little impact to date from the European crisis. Real GDP growth is estimated to have been strong in 2011, driven by a record maize harvest and strong expansion in bank credit, which has surpassed pre-crisis (2008–09) levels. Inflation continued to decline, broadly in line with the authorities’ target of 7 percent.

Despite copper prices rising to record highs, the external current account surplus narrowed significantly, mainly reflecting a strong expansion in imports and a decline in grants. However, gross international reserves rose above $2 billion for the first time, equivalent to 3 months of prospective imports.

Preliminary data suggest that the fiscal deficit of the central government remained flat at around 3 percent of GDP in 2011, as a large expansion in election-related spending was offset by a one-off payment of mining tax arrears.[pullquote]Preliminary data suggest that the fiscal deficit of the central government remained flat at around 3 percent of GDP in 2011, as a large expansion in election-related spending was offset by a one-off payment of mining tax arrears[/pullquote]

In 2012, real GDP is projected to rise by 7.7 percent, reflecting strong growth in copper production and non-maize agriculture, and an expansionary fiscal policy. The 2012 budget targets a deficit of 4.1 percent of GDP and a significant increase in investment. More than half of budget financing is expected to come from a US$500 million sovereign bond issue, and net domestic financing is targeted to remain low at about 1 percent of GDP. Inflation is projected to remain close to its current level of around 6 percent in 2012.

The Bank of Zambia (BOZ) recently changed its monetary policy framework from reserve money targeting to the use of a policy rate as the main monetary policy tool.

The Food Reserve Agency (FRA) will start buying maize and paddy rice from small scale farmers on 27th July, 2012 up to 31st October for maize and 30th November for paddy rice.

The Agency will target farmers based in villages, chiefdoms, rural farm blocks and settlements only and not commercial farmers who are well established.

FRA Board Chairperson Guy Robinson has disclosed the development to Qfm news in a statement.

Mr. Robinson says each Farmer shall be allowed to sell once, a maximum of 153 by 50kg bags of maize and 166 by 40 Kg bags of paddy rice.

He says only genuine and bonafide farmers are encouraged to supply maize and paddy rice to the Agency.

The board chairperson adds that those who do not qualify as small scale farmers are firmly forewarned of the ongoing scrutiny that will be undertaken during registration.

He further states that all farmers who wish to deal with the FRA should have a personal Bank account.

He says the Agency shall this year register farmers at buying depots and will also allocate empty grain bags according to the number of bags of maize to be supplied by a farmer in order to reduce production costs incurred by the farmer.

Mr. Robinson has warned that the FRA Board and Management will not tolerate or give room to fraud and other vices that characterised the past crop marketing seasons.

QFM