Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Minimum Wage Fixing Convention, 1970 (No. 131) - Zambia (Ratification: 1972)

Other comments on C131

Observation

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Articles 3 and 4 of the Convention. Minimum wage fixing machinery. Consultations with the social partners. The Committee notes that the Minimum Wages and Conditions of Employment (Amendment) Orders of 2012, Statutory Instruments Nos 45, 46 and 47, increased the minimum wage rates for different categories of workers, including shop workers and domestic workers. The Committee wishes to recall, however, that under section 3(1) of the Minimum Wages and Conditions of Employment Act (Cap. 276), the Minister of Labour and Social Security prescribes wage rates after consultation with the relevant trade unions only, while no provision is made for consultations with employers’ organizations. In this connection, the Committee notes the comments made by the Zambia Federation of Employers (ZFE) and the International Organisation of Employers (IOE), which were received on 4 July 2013 and transmitted to the Government on 11 September 2013. The ZFE and the IOE expressed their deep concern about the fact that the Government increased the minimum wage for general workers and domestic workers by over 50 per cent without consulting the stakeholders. They also indicated that the business community through the ZFE took the Government to court, which ruled that the Government needed to consult stakeholders and in particular employers before implementing the minimum wage. In its latest report, the Government indicates that the minimum wage legislation is under review and that, in order to set up a more inclusive and sustainable wage-fixing mechanism, the establishment of a sector-based minimum wage system is currently being considered. The Committee wishes to emphasize that holding genuine and effective consultations with both social partners at all stages of the minimum wage fixing process is a fundamental requirement of this Convention and goes to the very heart of its scope and purpose. The Committee accordingly asks the Government to ensure that representative organizations of employers and workers are fully consulted on the ongoing law reform process and that, once adopted, the new minimum wage legislation will make clear provision for full consultations with and the direct participation of, employers’ and workers’ organizations in the process of determination and periodical adjustment of minimum wage rates. The Committee also requests the Government to transmit any comments it may wish to make in reply to the observations of the ZFE and the IOE.