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Fixing conditions of service is a macroeconomic tool to fight poverty – LIZ

• Government has a duty to ensure that laws relating to fixing of minimum wages in Zambia are subjected to review.
• Government is expected to continue improving conditions of service for workers.
• Fixing the conditions of service is a macroeconomic tool to fight poverty.

Labour Institute of Zambia (LIZ) says Ministry of Labour and Social Security working with other labour institutions have the duty to ensure that lowly paid workers are pulled out of the poverty trap through enhanced income.
Speaking in an interview with Money FM News, Institute Executive Director Clement Kasonde has since welcomed plans by the Ministry to start reviewing the existing minimum wages and conditions of service Statutory Instruments (SIs) next week.
Mr. Kasonde stated that this is a good step because government is expected to continue improving conditions of service for workers especially those who are not represented by trade unions.
“The duty of the government through the Ministry of Labour and Social Security working together with other institutions of labour is to ensure that from time to time the laws relating to fixing of minimum wages in Zambia are subjected to review, in order to ensure that lowly paid workers are pulled out of the poverty trap through enhance income. This is very important because if you look at the philosophy regulating the minimum wage and if you look at how International Labour Organization (ILO) looks at minimum wage setting globally, it has two important effects at micro level and at macro level.”
“But at micro level it helps to pull the lowly paid workers out of poverty trap by enhancing their take home pay and also stimulating their propensity to spend and buy those necessities which will help them live for the next day. So this is a good thing by government and we commend the Minister because truly this is living to what is expected of the new dawn government is to continue improving the conditions of service for the workers in Zambia especially the vulnerable, those who are not represented by trade unions and equally those who are represented by trade unions,” Mr. Kasonde stated.
He said fixing the conditions of service is a macroeconomic tool to fight poverty whilst trying to pull the workers out of the poverty trap, a move that will also benefit the economy because once their wages improve, they will have enough money to spend on goods and services.
“And it is a macroeconomic tool to fight poverty whilst trying to pull them out of the poverty trap and also the whole economy will benefit because when their wages are increased, they will spend more because they have extra to spend and it lowers poverty and also deals with reducing inequality in society as well as uplifting the well-being of this category of employees and their families,” he added.
On Wednesday, Ministry of Labour and Social Security disclosed that the Labour Advisory Committee will next week be reviewing the existing minimum wages and conditions of service Statutory Instruments (SIs) for consideration by the Minister in charge, Brenda Tambatamba.
Officiating at the Mine Workers Union of Zambia (MUZ) 15th Quadrennial Conference in Livingstone, Brenda Tambatamba said minimum wages and conditions of service Statutory Instruments do not cover employees whose conditions of service are determined by means of collective bargaining.
She said this in a speech read on her behalf by Ministry’s Permanent Secretary Zecharia Luhanga.

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