Staff writer
The Zimbabwe Congress of Trade Unions (ZCTU) has revealed that globalization has had mixed implications on the labour sector in the country.
In his speech at the launch of Association for Labour Practitioners in Zimbabwe (ALPZ), on Wednesday, ZCTU acting Secretary General, Runesu Dzimiri said the impacts of globalization have been felt since the introduction of Economic Structural Adjustment Programme (ESAP) in the early 1990s as the country liberalized the labour market, resulting in massive retrenchments.
Dzimiri said the continued amendment of labour laws since 1985 is affecting the labour sector.
On the other hand, Dzimiri noted that some positives had been noted as a result of globalization such as facilitation of movement of skilled workers across borders, creation of new opportunities for business among other issues.
“We have been captivated by the theme of this launch which says “Globalisation: Impact on Local Labour Laws”.
Zimbabwe’s national labour legislation has not been spared from the impact of globalisation,”,said Dzimiri .
“We have had several amendments of the Labour Law from its inception in 1985 to date.Globalisation is characterised by international economic inter-dependence in trade, foreign direct investment (FDI), technology, and flow of goods and services (Jaumotte & Tytell, 2007). According to Scholte (2005), globalisation involves supra-territorial relationships among people, fostered by cultural, political, economic and social infusion.
” As noted by our scholars in Zimbabwe such as Llyod Sachikonye, Lovemore Madhuku, Blessing Chiripanhura and Tendai Makwavarara in their various works, Zimbabwe had to amend its labour laws as the country tried to adopt globalisation and to lure the much needed Foreign Direct Investments (FDI).
“Just a few years after independence the Zimbabwean government succumbed to globalisation pressure and reformed the labour laws by introducing the Labour Act of 1992. Markets were liberalised by opening international trade through the Economic Structural Adjustment Program (ESAP). Deregulation of the labour market gave back the power to employers to hire and fire, introducing minimum wage flexibility, while all labour market constraints such as government and union intervention were removed,” said Dzimiri.
Dzimiri said globalization has been felt in the country as multinational corporations seek local cheap labour.
“Generally speaking, in developing countries like Zimbabwe where multinational corporations seek cheaper labour, globalization significantly impacts local labour laws, potentially leading to increased competition and pessure for deregulation.”
Dzimiri said globalization has created an environment where competition among businesses is leading to cut labour costs, seeking to minimize salaries wage bill.
“Globalization, characterized by increased international trade and investment, creates a competitive landscape where businesses seek to minimize costs, including labour costs.
This pressure can lead to demands for deregulation of labour laws, such as weakening minimum wage laws, reducing worker protections, and undermining collective bargaining rights.”
He added:
“Companies may relocate production or services to countries with lower labour costs, leading to job losses and economic hardship in developed nations. Some argue that globalization can lead to a “race to the bottom” where countries compete to attract investment by lowering labour standards, potentially leading to exploitation of workers.”
The (ZCTU) Acting Secretary General also noted challenges in enforcing labour laws as multinational corporations take advantage of the disparities in laws labour laws and enforcement mechanisms.
“Multinational Corporations (MNCs) operating in multiple countries can exploit differences in labour laws and enforcement mechanisms, potentially shifting production to countries with weaker regulations.
” Developing countries, often facing economic constraints and limited resources, may struggle to effectively enforce labour laws, especially in the face of pressure from global markets.”
Dzimiri said the corruption epidemic and lack of transparency have adverse effects on the effectiveness of labour laws resulting in companies not abiding to regulations.
“Corruption and a lack of transparency can further undermine the effectiveness of labour laws, allowing companies to evade compliance with regulations.”
He added:
” Globalization can lead to job losses in certain sectors as companies relocate production to countries with lower labour costs. Increased competition from foreign workers can put downward pressure on wages, particularly for low-skilled workers.
” Some argue that globalization can lead to the exploitation of workers in developing countries, with long working hours, low wages, and unsafe working conditions.
Globalization can exacerbate income inequality, both within and between countries, as the benefits of economic growth are not always shared equitably.”
However, ZCTU ASG noted the positives brought up by globalization.
“Globalization can facilitate the movement of skilled workers across borders, potentially leading to a more skilled and productive workforce in certain countries.
” It can create new opportunities for businesses and workers in emerging markets, leading to the development of new industries and skills.
“Globalization can lead to increased trade and investment, which can stimulate economic growth and create new jobs. It can lead to the development of international labour standards and agreements, which can help to protect workers’ rights and improve working conditions globally.
Added Dzimiri:
” Globalization can also lead to increased competition among businesses, which can drive innovation and efficiency, potentially leading to better products and services for consumer.
Globalization presents both opportunities and challenges for local labour laws. While it can lead to economic growth and increased trade, it also poses risks to workers’ rights and labour standards.”
Dzimiri said there was a need to put in mechanisms to counter the negative implications of globalization.
“How do we then counter the negative impacts? International organizations and trade agreements can play a role in promoting fair labour standards and enforcing labour laws. Governments can strengthen labour laws and enforcement mechanisms to protect workers’ rights, including minimum wages, collective bargaining rights, and workplace safety regulations.
” Businesses can be encouraged to adopt socially responsible practices, including respecting workers’ rights and complying with labour laws, regardless of location. Raising public awareness about the impacts of globalization on labour rights can help to build support for policies that protect workers.”