Monday, January 30, 2012

sata assures investors

President of Zambia, Michael Sata has assured all companies operating in Zambia whether local or foreign, that Government is committed to maintaining an environment that conduces to their functioning in an atmosphere of serenity and peace reinforced by strictest adherence to the rule of law.
The President said in a statement made available to the media that Government style and policy was to discuss with employers and workers, matters of mutual interest following the statutory channels and procedures.
Mr Sata said that based Government style and policy, some of the approaches pursued by individuals in government were adrift with established procedure.
“Labour Unions are free to bargain with employers on salary or wage settlements as by law established, ” the statement read.
The president also said that in the interest of the economy, the his’s guidance, save for the special case of workers in the medical sector, was that the salary adjustments stay as close to inflation as possible.
“This is necessary to avoid triggering inflationary spirals which would then render salary increases futile, ” the statement read.
The President has enjoined and cautioned the Ministers and government officers not to resort to arbitrary positions which can only induce loss of confidence in our country and in the process undermine progress which is so essential and crucial to achieving poverty alleviation and reduction within the shortest time possible.
Lately the newly appointed Labour Minister Chishimba Kambwili has been making impromptu visits at companies threatening to close down those that are not offering Zambians better conditions service.
Last week, Mr Kambwili threatened to shut down Scaw Limited in Kitwe if it failed to improve conditions of services for its employees.
“This is necessary to avoid triggering inflationary spirals which would then render salary increases futile, ” the statement read.
The Minister also revoked the work permit of a Chinese Doctor who he accused of being rude when he visted his practice to check on a case of low salaries. Yesterday, Mr Kambwili defended his decision to order the revocation of the work permit for Dr Xisheng saying it will send a message to foreigners not to mistreat Zambian workers.
He said certain situations call for bold decisions and that he will not allow Chinese nationals to subject Zambian workers to low salaries.
“I usually emphasise a point with the use of hands and he told me that I am being rude. We cannot have a situation where a foreigner can tell a minister that he is rude, which he cannot do in his own country. We have received a letter from workers at Sinozam who complained that he (Dr Xisheng) is rude. We must set an example,” Mr Kambwili said.
He added: “We have to take certain measures that will act as a warning that when they (investors) come here, they must respect us.”
“I can agree with you that the 12 percent salary rise is too low. I have given management at MCM up to Wednesday next week to come up with a better pay rise. This afternoon, I will hold serious discussions with management at the mine to see how best they can give you a better pay,” Mr Kambwili said.
Mr Kambwili however said he has nothing against Chinese and Indian investors but that most of the abuses reported to his office are perpetrated by them and warned that he will not allow such a situation to continue.
And at KCM last week Mr Kambwili gave the Mine Workers Union of Zambia, the National Union of Miners and Allied Workers (NUMAW) and MCM management a two-day ultimatum to conclude negotiations and sign the new collective agreement.
Speaking when he addressed the miners at the MCM general offices in Kitwe , Mr Kambwili assured the workers that Government will dialogue with management to explore ways of increasing their salaries ‘reasonably’.
Mr Kambwili said the 12 percent salary increase management is proposing is unreasonable. He directed MCM management to reconsider its offer.
“I can agree with you that the 12 percent salary rise is too low. I have given management at MCM up to Wednesday next week to come up with a better pay rise. This afternoon, I will hold serious discussions with management at the mine to see how best they can give you a better pay,” Mr Kambwili said.