By Isaac Zulu
Private Sector Development Association chairperson Yusuf Dodia has said that the recent upward adjustment of the minimum wage for domestic workers, shop assistants and general workers is a recipe for job losses.
And Dodia has said that government is giving red carpet treatment to mining companies.
Speaking in an interview with Daily Revelation media, Dodia said that the upward adjustment of the minimum wage for the said category of workers will have some repercussions on the labour market, which he said will lead to job losses.
“Government does not employ shop assistants and domestic workers. These are employed by the private sector. General workers, yes government does employ but the private sector many more. The minimum wages for these workers have been increased by more than 50 per cent to 67 per cent. And already some employers are struggling to pay their workers,” Dodia explained. “This increment in the minimum wages will see domestic workers who are formally employed being informally employed; meaning that they will be getting paid much lower wages and will not be able to claim their rights. Shop assistants and general workers are also likely to be laid off because employers will not be able to pay those wages. Clearly, the upward adjustment in the minimum wages for domestic workers, shop assistants and general workers is a recipe for job losses. It will have some repurcasions on the labour market.”
Dodia said that the decision to increase the minimum wages for domestic workers, shop assistants and general workers lacked wide consultations.
“We appreciate the fact that the economy is tough for majority people and prices of essential commodities have gone up, but we should also recognise the fact that the people are finding it difficult to employ workers. And it appears the announcement of these minimum wages was done without wide consultations from the private sector and other stakeholders. It was done within government,” he said. “They should have pegged these minimum wages within the capacity of an average Zambian and the private sector to pay those wages. With the prevailing economic situation in the country, I don’t think most employers in the private sector will afford to pay those wages.”
On taxation in the mining sector, Dodia said that government is giving a red carpet treatment to mining companies.
“The government has given a lot of red carpet treatment to the mining sector in the country at the expense of the private sector. There are these non collection of tax revenue by government, high collection of revenue from government. The mining companies are enjoying all these privileges, thereby putting pressure on the domestic economy and private citizens,” said Dodia.
