Volatile Kwacha destabilizing labour market – ZCTU

ZCTU Secretary General Roy Mwaba - Photo Credit The Post
ZCTU Secretary General Roy Mwaba - Photo Credit The Post
The Zambia Congress of Trade Unions (ZCTU) has called upon government to urgently put in place sustainable measures that will stem the free fall of the Kwacha in order to stabilize the labour market.

The ZCTU is of the view that the volatile kwacha is destabilizing the labour market.

Speaking during a media briefing in Lusaka this morning, ZCTU Secretary General Roy Mwaba has observed that the continued free fall of the kwacha will erode real incomes of the workers and put pressure on unions to start negotiating for salary and wage increments.

Mr. Mwaba states that the stress on the Kwacha will also have a spiral effect on the current price levels of goods and services a situation which will reduce the standards of living in view of the high prices of fuel, costs of transport and higher electricity and water tariffs.

He says the unfavorable standing of the country’s currency will also have a negative effect on efforts to reduce unemployment as there will be loss of confidence among investors who are expected to bring in the much needed Foreign Direct Investment (FDI) and create jobs.

Mr. Mwaba says it is for this reason that the ZCTU is of the view that government intervenes in the foreign exchange market by coming up with mitigating factors against the volatile Kwacha.

He says among the measures his union expects government to take is to restore investor confidence, reintroduce mineral windfall tax and strengthen the political and economic policies in order to help the Kwacha regain its strength.


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Photo Credit – ThePost