ZLDC staff: Picture by ZLDC
By Noel Chulu and Yamikani Ngoma
Introduction
In 1999, the International Labour Organisation (ILO) developed the Decent Work Agenda. Later, at the 2005 United Nations World Summit, countries agreed to make employment and decent work for all a central objective of development strategies to support fair globalisation. Employment creation was later declared a priority by the G20 in 2014[1]. Following this, the Government of Zambia in collaboration with the Employers’ and Workers’ Organisations (Social Partners) and contributions from the wider group of stakeholders developed The Zambia Decent Work Country Programme 2020-2022 (Z-DWCP). The development process of the Z-DWCP was supported by ILO.[2]
In 2020 Zambia was severely hit by the COVID-19 pandemic which badly affected the economy [3]. The Government’s response to the COVID-19 pandemic was guided by the Public Health Act, Chapter 295 of the Laws of Zambia, which provides for the prevention and suppression of infectious diseases. Part IV of the Act provides for the prevention and suppression of infectious diseases, while Part V makes a special provision regarding formidable epidemic diseases.
Under the provisions in Part V, it empowers the minister to declare an infected area whenever any part of Zambia appears to be threatened by any formidable epidemic, endemic or infectious disease, and the minister may, by Statutory Instrument (SI), make regulations to this effect. Accordingly, the Government invoked the provisions of the Act, and issued three statutory instruments, namely:
(i) SI No. 21 of 2020; the Public Health (Notifiable Disease) (Notice), 2020 which designated COVID-19 as a notifiable disease.
(ii) SI No. 22 of 2020; the Public Health (Infected Areas) (Coronavirus Disease 2019), Regulations, 2020, which provided additional regulations to facilitate management and control of COVID-19; and
(iii) SI No. 62 of 2020; the Public Health (Infected Areas) (Coronavirus Disease 2019) (Amendment) Regulations, 2020.
The promulgation of SI No. 21 and No. 22 of 2020 provided the main legal framework for measures to be implemented to manage the pandemic in Zambia. This framework allowed for the progressive tightening of the containment measures, including the introduction of screening at ports of entry and temporary closure of some ports of entry, mandatory quarantine for infected and high risk persons, as well as closure of some public places, such as bars, restaurants and places of worship, for gatherings. These measures put in place by the Act and statutory instruments affected the economy in different sectors of the country.
It is in this light that this paper analyses how COVID-19 and the measures put in place affected the economy specifically with regards to employment. It further responds to the question of how sustainable and decent jobs can be created amidst COVID and the transformative measures to accelerate socio-economic development in the country.
Status of the economy in Zambia
The COVID-19 Pandemic, although being a health crisis, posed serious economic challenges. This was mainly on account of the negative effects arising from the public health measures that were adopted to contain the spread of this novel virus. Measures such as restrictions on the movement of goods and individuals, among many others, had adverse implications for businesses, livelihoods and other socio-economic activities. Consequently, the Zambian Government was faced with a challenge of combating the spread of the Corona Virus, while at the same time ensuring that the remedial measures taken allowed economic activities to thrive.[4]
In Zambia the informal sector employs nearly 70% of the labour force. While large, the informal sector is characterised by low pay and productivity as well as a lack of access to social security which makes it prone to suffering severely during outbreaks like Covid-19. Past experiences with similar epidemics and crisis situations show that informal workers without social protection or any kind of insurance are more exposed.[5] Further to this, the informal sector has been a victim of containment measures. In Lusaka, for example, the city council banned street vending as part of the move to promote social distancing and reduce overcrowding in the central business district of Lusaka. All vendors were directed to established markets designated for trading.[6] The council, however, experienced much pushback from the vendors as a result of the significant negative effect this would have on them.[7]
Thousands of jobs have been directly affected by business closures and reductions in operational capacity, and Zambia’s March Consumer Price Index statistics 2020 have already shown a marginal increase in inflation suggesting that Covid-19 is likely to have a real impact on households’ welfare and poverty, especially among the most vulnerable households[8]. It is expected that job losses will be more pronounced in the informal sector given that the informal sector employs nearly 70% of the labour force.[9]
The pandemic affected various revenue-building streams across the economy. Some of these are:
Tourism and Entertainment: The tourism sector was one of the most affected by the COVID-19 Pandemic. This was evidenced by restricted domestic and international travel, including all forms of socialisation. This led to the loss of jobs and revenue for most industries in the sector. Within a month of Covid-19 being reported in Zambia, most hotels, lodges and even the world-famous Victoria Falls were closed to the public[10].This put employees at risk of complete job loss when businesses did not resume. The effects of COVID-19 manifested in all areas of tourism, ranging from the reduced inflow of international and domestic tourists, reduced room occupancy rate for lodges and hotels, as well as reduced public events of entertainment and artistic nature.[11] The tourism sector was the hardest hit, losing more than 60% of jobs.[12]
Agriculture: The impact of Covid-19 on the sector is complex but the pandemic has certainly had some negative effects on labour supply, productivity, value chains and exports (due to likely input supply shortages). Therefore, this has caused a loss of jobs due to a lack of demand for agriculture supplies.[13]
Information and Communications Technologies (ICT): Information and Communications Technologies (ICT) was undoubtedly one of the very few industries that managed to ride over the COVID-19 wave and even profit from it. In the first quarter of 2020, the industry grew rapidly at 20.7 per cent although slightly slower than the growth rate for the same period in 2019 (30.1 per cent). In the second quarter, the industry’s growth picked up to 29.3 per cent compared to the 25 per cent growth rate recorded over the same period in the preceding year. This growth rate was quite phenomenal and by far exceeded the industry’s average growth rate of 18.5 per cent over the period 2011-2018. Growth was bolstered by measures aimed at limiting person-to-person contact such as working from home, virtual meetings, e-learning and other e-services (including electronic financial intermediary services – mobile money) that increased the demand for broadband and other ICT services.[14]
Small and Medium-scale Enterprises Sector: In Zambia Small and Medium-scale Enterprises (SMEs) constitute the majority of businesses and play an important role in employment creation and economic growth. The sector is estimated to account for 97% of all businesses in Zambia contributing 70% to GDP[15]. Accounting for 88% of employment, SMEs also play a key role in society as they tend to employ a large share of the most vulnerable segments of the workforce.[16] Given the importance of the sector to the economy, it will be imperative for the government to put in place measures to protect SMEs, especially in the earlier identified sectors, during this time.
While we apply the same assumptions to the formal and informal sectors, the informal sector is likely to be more severely affected than the formal sector due to the lack of social safety nets and labour law implementation.
Job Creation in Zambia
The employment industry is made of two key players – the employer who provides the environment for goods and services to be provided and the employee who provides the employer with the capacity to deliver said goods and services appropriately. A symbiotic relationship that is inextricably intertwined as one cannot exist without the other.
At the height of the Covid 19 pandemic in 2020, the Zambia Statistics Agency in collaboration with the Ministry of Labour and Social Security published the 2020 Labour Force survey illustrating the labour market statistics. This data is key to planning and policy formulation for development, more specifically, the National Development Plans (NDPs), Ministerial Strategic Plans, and National Budget Briefs to mention a few. The Labour Force Survey report covers socio-economic and demographic indicators such as employment-to-population ratio, labour force participation rate, unemployment rate and working conditions, hours of work, etc[17].
With a population of almost 18 million, Zambia’s working-age population (15 years and older) was estimated at 9.9 million. Of this number, the labour force was represented by only 3.4 million people, 18.8 per cent of the population. The number of employed people in Zambia was estimated at 2.9 million with a third of the employed population working in the formal employment sector and the other two-thirds in the informal and household sector[18].
According to the Survey, the employment-to-population ratio was 30.2 per cent. The employment-to-population ratios for males and females were 38.5 per cent and 22.7 per cent, respectively. The unemployed population was estimated at 477,147. Of these, 160,121 were in rural areas and 317,026 were in urban areas. The ratio of male and female youth unemployed was 17.6 per cent and 22.7 per cent, respectively[19].
While this data illustrates the most recent statistics on the state of employment in the country, the occurrence of the pandemic has undeniably changed the landscape of employment in Zambia, having affected several socio-economic factors and job availability and sustainability in the country.
It begs the question: in the world of work today, what does a decent and sustainable job look like?
Well, almost everyone can agree that a decent job is one sure way to get a person out of poverty. What is the reality? Hundreds of thousands of people dream of a job where security, dignity, freedom and equity are not just a figment of one’s imagination but are recognised and realised in the workplace.
As envisaged by ILO, a job/work is considered decent when it pays a fair income, it guarantees a secure form of employment and safe working conditions, it ensures equal opportunities and treatment for all, it includes social protection for the workers and their families, it offers prospects for personal development and encourages social integration, and workers are free to express their concerns and to organise[20]. It follows that “quality employment” and “decent work conditions” correlate with the reduction of poverty and inequalities. They provide for financial and social empowerment of, especially, women, youth and people with disabilities. This is especially true in underdeveloped/third world countries such as Zambia where the rate of employment let alone the availability of decent jobs is dismally disproportionate to the needs of the economy and the people.
Is this attainable in Zambia and, if so, what does Zambia have to do to realise a world of work that creates and provides decent jobs with these characteristics?
Accelerating Transformation of the labour force
While laws exist to regulate the employment sector, the diversity of employer and employee nationalities and cultural views and beliefs, in some instances, gravely affect the conditions of service and employment. Such instances arise, for example, as a result of language barriers and the employer’s disregard for or failure to recognise the employee’s rights in the workplace.
Transforming the working space in order to create decent and sustainable jobs for employees in Zambia would, therefore, entail creating job opportunities, equal opportunities, social dialogue at the place of work, workers’ rights at the place of work, social protection, jobs that one looks forward to being in until maturation of contract or retirement, etc.
Achieving this draws on a need to enforce the existing legislative framework i.e. the Constitution of Zambia, the Employment Code Act, and the Industrial and Labour Relations Act.
The Constitution of Zambia, Chapter 1 of the Laws of Zambia
The Constitution is the supreme law of the land. All laws must conform to or not be in conflict with the Constitution. Any laws or regulations inconsistent with it are null and void to the extent of the inconsistency.
Article 23 of the Constitution prohibits discriminatory acts in the workplace such as affording different treatment to different persons attributable, wholly or mainly to their respective descriptions by race, tribe, sex, place of origin, marital status, political opinions, colour or creed whereby persons of one such description are subjected to disabilities or restrictions to which persons of another such description are not made subject or are accorded privileges or advantages which are not accorded to persons of another such description.
Protection against discrimination in the public service is provided through Article 259 which guarantees regional diversity and equal opportunities for the youth, women and persons with disabilities.
The Employment Code Act No. 3 of 2019
The Employment Code Act is the governing legislation in matters concerning labour,the employment sector, and the regulation of employment of persons.[21].
In this regard, the Employment Code Act provides for the creation of decent and sustainable jobs by ensuring the provision of job security for employees in the form of well-defined terms and conditions of employment in the form of a contract. In accordance with sections 33 to 48 of the Act, a contract should stipulate the duration of the contract, the conditions of service, rights and duties, and any benefits accruing to the employee by way of their position or employment at the workplace.
The Industrial and Labour Relations Act, Chapter 269 of the Laws of Zambia
The Act provides for the procedure by which an aggrieved employee should bring a complaint/application before a court of law, formation of trade unions and employers’ representative organisations.
Section 108(1) of the Industrial and Labour Relations Act provides that no employer shall terminate the services of an employee or impose any other penalty or disadvantage on any employee, on grounds of race, sex, marital status, religion, political opinion or affiliation, tribal extraction or social status of the employee.
The National Pension Scheme Act No. 40 of 1996
The Act provides social protection as a benefit for persons in employment. As the designated authority, the National Pension Scheme Authority (NAPSA) requires and ensures that employers register their employees with the Authority, remit pay as you earn (PAYE) contributions on behalf of their employees, and that they are compliant. This requirement is mandatory for all employers in the formal, informal and household sectors.
Workers’ Compensation Act, Chapter 271 of the Laws of Zambia
The Workers’ Compensation Act, like the NAPSA Act, affords employees social protection. It provides provision for the establishment and administration of a Fund for the compensation of workers disabled by accidents to, or diseases contracted by, such Workers in the course of their employment, and for the payment of compensation to dependants of workers who die as a result of such accidents or diseases.
What measures should be put in place for the creation of sustainable and decent jobs to be attained?
Productive employment and “decent work” are key elements to achieving fair globalisation and poverty reduction.[22] Some of the measures are as follows:
Implementation of existing legislative framework
A good starting point is the implementation of the existing legislative framework. The legislative framework adequately provides for the creation of decent and sustainable jobs, and equally provides measures that guarantee adequate checks and balances as well as safeguards for employees in the workplace.
Revamp the sectors affected
The Commission noted with concern that the impact of the Covid-19 outbreak has set an immediate decline in business activities and hence the loss of jobs. Therefore, there is need to review measures in order to preserve employment and prevent the sector from total collapse.
Further, we recommend that the Government should enhance tourism marketing on the domestic market and provide incentives for local tourists. This is in line with the Seventh National Development Plan targets of having lower rates for domestic tourists in order to stimulate domestic tourism. In addition, in order to make the tourism sector more competitive, the Committee recommends that the Government should reduce or suspend the tourism levy to stimulate demand for tourism services, as well as to align visa costs with competitive countries in the region to attract more foreign tourists as this will create more employment opportunities in this sector.
Investing in youth and women empowerment
In addition, the United Nations through its Strategic Development Goals sets out guidance on the promotion of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all[23].
In this regard, the need to provide the youth with relevant good quality education and training cannot be overstated. Investing in the youth will allow for them to be able to effectively transition to decent jobs with the relevant skills and training to effect progressive economic change in the nation.
Moreover, investing in information, communication and technology equipment would create more opportunities for the youth amidst Covid.
Furthermore, in line with Article 259 of the Constitution, the Government should put mechanisms in place that guarantee the empowerment of women, youth and persons with disabilities as a means of eradicating poverty, building and strengthening the financial status of families, and developing sustained economic growth. As a mechanism for sustained economic growth, the Government should ensure social protection for all starting with the youth based on relevant ILO guidelines.
Changes in the nature of work practices
It was observed that although the informal sector created employment opportunities for the youth and the general public, most of these jobs were casual jobs and not decent jobs. We noted that the Government had banned casualisation and was advocating for creation of decent jobs. We further noted that in the past, the Government had intervened to prescribe a minimum wage for domestic workers, shop keepers and other similar categories of workers in order to protect this section of the labour force. In light of this, we recommend that the Government intervenes and captures casual workers operating in retail, wholesale shops and mobile money booths in the minimum wage regulations in order to promote decent jobs in line with the aspirations of the Seventh National Development Plan.
References
[1] https://ec.europa.eu/international-partnerships/topics/employment-and-decent-work_en
[2] https://www.ilo.org/wcmsp5/groups/public/—ed_mas/—program/documents/genericdocument/wcms_801342.pdf
[3] Ministry of finance press document on debt treatment under G20 common framework.2021
[4] Republic of Zambia Report of the Committee on National Economy, Trade and Labour Matters
On the Impact of the Covid-19 Pandemic On Zambia’s Economy for The Fifth Session of the Twelfth National Assembly 2020 on page 2
[5] UNDP (2020). Briefing Note: The Economic Impacts of COVID-19 and Gender Inequality- Recommendations for Policy Makers.
[6] Lusaka Times (2020) Lusaka City Council to stop street vending in the Central Business District (https://www.lusakatimes.com/2020/04/01/lusaka-city-council-to-stop-street-vending-in-the-central-business-district/) Accessed 06 April 2020
[7] Zambian Watchdog. Lusaka City Council Bans Street Vending. Available at: https://www.zambiawatchdog.com/lusaka-city-council-bans-street-vending-in-cbd/
[8] Ibid
[9] ibid
[10] A policy brief on mitigating the Socio-economic Impact of Covid-19 in Zambia. April 2020 on page 5
[11] A policy brief on mitigating the Socio-economic Impact of Covid-19 in Zambia. April 2020
[12]https://www.zamstats.gov.zm/phocadownload/Labour/2018%20Labour%20Force%20Survey%20Report.pdf
[13] Ibid
[14] ibid
[15] A policy brief on mitigating the Socio-economic Impact of Covid-19 in Zambia. April 2020 p6
[16] International Trade Centre. Promoting SME competitiveness in Zambia.
[17] https://www.zamstats.gov.zm/publications/
[18] Ibid.
[19] Ibid.
[20] https://ec.europa.eu/international-partnerships/topics/employment-and-decent-work_en
[21]https://www.parliament.gov.zm/sites/default/files/documents/acts/The%20Employment%20Code%20Act%20No.%203%20of%202019.pdf
[22] https://www.un.org/sustainabledevelopment/wp-content/uploads/2018/09/Goal-8.pdf
[23] SDG Goal No. 8 - https://sdgs.un.org/goals/goal8