Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Article 12(1) of the Convention. Regular payment of wages. The Committee notes the Government’s indication that it continues its effort to reduce wage arrears owed to local council employees, and that the total wage debt owed to the Mufumbwe District Council workers now stands at 2.6 billion Zambian kwacha (ZMK) (approximately US$560,000). The Government indicates that wage arrears are due to the fact that local councils have had their revenue sources reduced over the years. It also indicates that grants are given to local authorities to help them reduce and eventually eliminate all salary arrears. While noting these explanations, the Committee asks the Government to collect and transmit comprehensive information concerning the overall situation of wage arrears of local council employees in all nine provinces of the country. It also asks the Government to describe in detail any measures, other than giving restructuring grants, intended to resolve the ongoing wage crisis. The Committee would be particularly interested in receiving information on any collectively agreed measures or initiatives, and more generally, on the role of social dialogue in tackling the persistent difficulties in the regular payment of wages.

In this respect, the Committee wishes to refer to its 2009 general observation in which reference was made to the Global Jobs Pact, adopted by the International Labour Conference in June 2009 in response to the global economic crisis, that places particular emphasis on the need to strengthen respect for international labour standards and expressly identifies wage-related ILO instruments as being relevant in order to prevent a downward spiral in labour conditions and build recovery (paragraph 14). In this connection, the Committee wishes to emphasize the importance of Convention No. 95, which seeks to prevent wage arrears that not only deprive workers of cash and therefore lower consumption, but also imply poor tax revenues and reduced public spending, thus leading to a vicious circle that affects the entire economic and social tissue of the society. In view of the complexity of these issues, progress may only be made through cooperation with social partners while reforms and compromise solutions in a crisis environment call for constant social dialogue. Moreover, drastic measures need strict monitoring and enhanced enforcement, which in turn implies reinforced labour inspection services and a system of truly dissuasive and effective sanctions.