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1、ALTERNATIVES TO NEO-LIBERALISM IN SOUTHERN AFRICAA CASE OF THE LABOUR MARKET IN ZAMBIAGrayson Koyi1.0Introduction Zambia has a young and rapidly growing population of about 12.8 million people. Children (aged 014) represent roughly 45.3% of the population and young adults (age 1524) about 21.5%. Adm
2、ittedly, this population structure (with a significant economically active population currently places strong demands on socio-economic opportunities and services such as employment, livelihood creation, health and education services. Managing such a complex demographic structure is, therefore, one
3、of the key labour market challenges for Zambia presently and in the future. However, an investigation of the overall labour market policy thrust in Zambia suggests an absence of a sustainable and comprehensive framework to ensure employment and livelihood creation for all the (potentially) economic
4、active populace. Beyond this demographic challenge is also the manner in which structural adjustment measures have cut a jagged line across the labour market in Zambia. Incidentally, following the implementation of structural adjustment programmes (SAPs) in the 1990s in Zambia, the role of the state
5、 in managing labour market processes as well as acting to mitigating undesired labour market outcomes has significantly diminished. This has led to a burgeoning of informal employment, alongside disturbing evidences of casualization and other atypical forms of employment. Wages and conditions of wor
6、k, especially for public sector workers and the bulk of informal workers, have equally trended downwards, leading to a public outcry for a restoration of the dignity of work and for a more humane treatment of workers in Zambia. Besides, a number of workers, especially those in informal employment, h
7、ave lacked guaranteed social security thereby exposing them to various vulnerabilities in old age once they are no longer employable.Any alternative development framework that is human centred cannot be constructed without a strategy for the labour market. Labour remains a crucial element not only f
8、or productivity and economic growth, but also as a possible means for creating sustainable livelihoods, promoting equity in income distribution and poverty reduction (at best, elimination). Thus an investigation of the Zambian labour market and its policy and legislative framework will enable this s
9、tudy to draw a conclusion about how pro-poor and developmental this market is in the country. This study will also seek to reveal, through empirical evidence, how neo-liberalism in Zambia has not delivered on the developmental and growth targets within the labour market as was envisaged from the ons
10、et of SAPs. In this vein, it is important to appreciate how the forces of neo-liberalism have conspired to impoverish workers in Zambia and elsewhere in the world where such forces have been given free reign. This paper will also discuss the resulting labour market outcomes from SAPs and identify th
11、e areas of intervention.The paper is organized as follows: the next section provides the conceptual and analytical infrastructure that informs the papers discussion. The third section provides the context within which the discussion is situated. The fourth section undertakes a historical survey and
12、thus discusses the impact of structural adjustment programmes on the labour market in Zambia. The fifth section looks at the labour market today. Section six analyses labours social base, while section seven points to areas for intervention. The last section makes some concluding remarks.2.0Conceptu
13、al and analytical framework2.1 Definition of key labour market concepts The economically active populationIn Zambia, the economically active population comprises all persons of either sex between the ages of 15 and 65, who furnish the supply of labour for the production of goods and services during
14、a specified time reference (NELMP, 2004:9; CSO, 2007:8). This excludes full-time students, full-time housewives, prisoners, beggars and people who are retired, but includes the unemployed. In the Zambian context, and consequently in this paper, the concept of the economically active is used synonymo
15、usly with the labour force. Figure 1 illustrates the conceptual framework of the economically active population in Zambia.Figure 1: Conceptual framework of the economically active populationSource: National Employment and Labour Market Policy (2004:ix)Employed populationThe concept of the employed p
16、opulation is understood as comprising all persons who perform some work for pay, profit or family gain (CSO, 2007:8). This conceptualization follows the definition used by the Central Statistics Office (CSO) in the 2005 labour force survey were the employed population was used to include all persons
17、, between the ages of 15 and 65, who had a job and would normally have worked for pay or profit or return in kind. It also includes those who are on paid or unpaid vacation or study leave, subsistence farmers as well as those who are temporarily prevented from working because of illness, bad weather
18、, industrial dispute etc. Perhaps of important note is that the employed population in Zambia includes those in both formal and informal employment. Therefore, caution must be exercised in interpreting the employed population indicator, especially because informal employment and the decent work defi
19、cits associated with such employment has been on the rise. Similarly, the interpretation of the unemployment rate in Zambia must be seen in the context of how the employed population is understood and measured.Employment-to-population ratioThe employment-to-population ratio is defined as the proport
20、ion of Zambias working-age population who is employed (CSO, 2007:8). Generally, a high ratio means that a large proportion of a countrys population is employed, while a low ratio means that a large share of the population is not involved directly in market-related activities because they are either
21、unemployed or (more likely) out of the labour force altogether. What is acknowledged, however, is that this indicator alone is insufficient for assessing the level of decent work. UnemploymentThe unemployment rate is probably the best-known labour market measure. It tells us the proportion of the la
22、bour force who does not have a job and is actively looking for work. In the Zambian context, unemployment is defined as all persons above the age of 14 years who, during the seven days prior to the labour force survey of 2005, were without work, currently available for work, and seeking work (LFS, 2
23、007:8) This definition is consistent with the International Labour Organisations (ILO) definition, which is the most widely used definition, at least as regards the reporting of employment statistics. According to the ILO, the unemployed are defined as “those who have not worked more than one hour d
24、uring the short reference period but who are available for and actively seeking work”.UnderemploymentA related concept is that of underemployment i.e. those working for less hours (daily, weekly, or seasonally) than they would like or are engaged in work for which they are overqualified. In this pap
25、er, therefore, underemployment is broadly understood as under utilisation of the productive capacity of the labour force (LFS, 2007:8). The definition also includes all persons in employment whose hours of work are insufficient in relation to an alternative employment situation in which the person i
26、s willing and available to engage (LFS, 2007:8).2.2Methodology and data sourcesThe study used the inductive method of analysis. Inductive analysis begins with specific observations and builds towards general patterns (Moonilal, 1998:11). Inductive method is a contrast to the hypothetical-deductive a
27、pproach, which requires the specification of the main variables and the statement of specific research hypothesis before data collection (Moonilal, 1998:11). The study was mostly qualitative using secondary data mainly. On this basis, the study methodology involved a review of important documents th
28、at shed light on the labour market in Zambia. This review was both general and specific to the Zambian labour market situation. The data sources included related books, articles, journals, pieces of legislation, policy documents, published and unpublished papers, documents from the libraries, and In
29、ternet databases in and outside Zambia. Most data on labour market characteristics was obtained from the Central Statistics Offices recent labour Force Survey (LFS, 2007). Data on employment practices, wage setting and conditions of work was obtained from the Zambia Congress of Trade Unions (ZCTU).
30、3.0An overview of key labour indicators under structural policies3.1An overview of the labour market in ZambiaThe recent favourable economic performance in Zambia has not led to any reduction in unemployment levels. On the contrary, unemployment rates have increased during the period of relatively i
31、mpressive economic growth, thereby raising troubling questions about the pattern of Zambias economic growth. Income distribution has also remained skewed. According to the United Nations Development Programme (UNDP), Zambia is one of the most unequal societies in sub-Saharan Africa (UNDP, 2007:34).
32、The Gini coefficient falls in the 0.50 to 0.60 range, which places Zambia with South Africa, Namibia, and Botswana as the most unequal in sub-Saharan Africa, and close to Brazil.Total formal sector employment in Zambia is estimated at 495,784 while the active labour force is at about 4.1 million (LF
33、S 2007:45). As seen from table 3 below, only about 12% of persons in the active labour force are employed in the formal sector, with the other 88% engaged in the informal sector. Also evident from the table is that informal economy employment is more common among females (94%) than males (83%). Tabl
34、e 1 further demonstrates that only 6% of women in the Zambian labour force have jobs in the formal sector. Table 1: Proportion of labour force in the formal and informal sectors, ZambiaSex/ResidencePeople employed in formal sectorPercent share of formal sectorPeople employed in informal economyPerce
35、ntshare of informal economyTotal number of employedAll Zambia495,784123,635,747884,131,531Males330,109171,611,710831,941,820Females131,38362,058,329942,189,711Rural60,38822,959,033983,019,421Urban389,23935722,872651,112,110Source: Labour Force Survey (2007:45)With the contraction of the formal secto
36、r, the informal sector has increasingly become the only sure source of employment in Zambia. In terms of average monthly earnings by industry, the agriculture sector is on the low side while the financial sector is on the high side. A summary of average monthly earnings by industry are depicted in t
37、able 2 below, while the distribution of the labour force by sector is shown in figure 2.Table 2: Average monthly earnings by industry (Kwacha) The official exchange rate as at 20 November 2010 was: 1 US $ =4700 Zambian Kwacha, ZambiaIndustryAll ZambiaRuralUrbanAll Zambia293,621127,652540,961Agricult
38、ural93,62983,944131,668Mining 985,854190,9671,034,035Manufacturing387,553145,107459,549Electricity, Gas and Water1,007,5051,037,246994,512Construction462,607221,004520,448Trade, Wholesale and Retail292,341112,830336,419Hotels and restaurants273,910138,843290,613Transport & Communication559,962274,06
39、6587,377Financial1,218,723302,3851,326,748Community Social Services820,354687,392847,207Not Stated242,217410,606146,628Source: LFS (2007:60) Source: Labour Force Survey (2007)3.2Impact of structural adjustment programmes on the labour marketThe impact of Structural Adjustment Programmes (SAPs) on th
40、e labour market in Zambia has been very telling. To help with this impact analysis, two concepts often used in the literature in industrial relations (pluralist and unitarist) are adopted. Accordingly, the tendency in industrial relations has been to pose human resource management and industrial rel
41、ations as opposing and indeed excluding concepts. The pluralist school of thought sees employees and employers as two separate forces with interests that are essentially in conflict but which can be brought together through a variety of institutional and ideological mechanisms in a negotiated relati
42、onship in order to make a particular factory or office work. In this model, industrial relations is about policing that relationship and keeping the rather unstable show on the road.The unitarist school of thought sees the world differently. In place of two legitimately separate constituencies, ther
43、e is only one interest: that of the organization as a whole one which is led and articulated primarily by those at the top of the organization.Under SAPs, the labour market regulation framework which was premised on a pluralist model was replaced with one based on a unitarist model. The starting poi
44、nt of this impact analysis is therefore a paradox. Nevertheless, in discussing the impact of SAPs on the labour market in Zambia, one observes that the 1990s saw an unprecedented onslaught on the component aspects of the labour market. The following labour market outcomes can therefore be traced to
45、the SAPs: The proportion of employees in trade unions fell as thousands of jobs disappeared from the unions heartland i.e. the formal sector. During the 1990s, over 90,000 jobs from the formal sector disappeared as the economy shed off jobs in huge numbers. Industry wide wage-setting approaches and
46、collective agreements diminished in importance and in some cases almost disappeared. Enterprise based bargaining assumed common place. Employers became freer from the official regulation of wages and thus were more able to offer the terms and conditions that they believed best suited them. Managemen
47、t prerogative in decision-making grew. Management strategies placed a greater emphasis on the devolution of responsibility to operating levels, dealing with individual employees, and the flexible utilization of labour. Consequently, there has since been an increasing stress on individuals and with t
48、he precepts of strategic human resource management in which the questions of policy in the field of employment flow from business priorities rather that being a motor force in their own right. The revised industrial law began to intervene much more directly and many previous practices, including leg
49、al industrial action, was effectively outlawed.This represents a formidable list and yet the real scope of this transformation appeared to be in doubt, which led some commentators and impartial observers to maintain that collective bargaining still remained, directly or indirectly, the prime determi
50、nant of the terms and conditions of employment for the majority of people at work in Zambia.Three principal sources of neo-liberal pressure leading to these labour market outcomes can be identified: Corporate strategy; The legislative framework; Economic influences.The change in each of these areas
51、and the interaction between them have been shaping the nature and functioning of the labour market in Zambia since the era of SAPs. The result is a subtle series of shifts, rather than big bang changes from one model to another. At present, the labour market in Zambia is clearly in a state of transi
52、tion where the final destination of change is still open to question. The common theme is greater variety in arrangements and a greater choice in approach towards employee relations, wage determination and employment contracts.Corporate strategyOne sees in the Zambian labour market what might be cal
53、led the internalization of wage setting a decisive move towards the decentralization of bargaining within corporations. The roots of this shift lie largely in developments in neo-liberal corporate strategy. However, the trend produced a redefinition of relations with trade unions. Interestingly it d
54、id not manifest itself in any significant push to exclude trade unions where they had been previously recognized. In short, instance of de-recognition were rare. Much more frequent were moves to: reduce the range of subjects and decisions covered by joint determination; reverse the trend towards the
55、 unionization of more senior employees; ensure that trade unions did not enjoy a monopoly over communication with the workforce; concentrate attention on relations with in-house employee representatives rather than external union officials.This redefinition (and reduction) in the relationship with t
56、rade unions has had significant implications for decision-making and the exercise of authority within the workplace. Looking ahead, there is no reason to expect that neo-liberal corporate strategy will change in its impact on the labour market in Zambia. If anything, one might expect an intensificat
57、ion of the central drivers for industrial change, leading to: a growing emphasis on flexibility of production methods; an increasing search for ways of reducing the time involved in developing new products and bringing them to the market; a continuing drive to devolve bottom line profit responsibili
58、ty to lower and lower units of operation; a recognition that speed of response and ability to change direction is the key to survival; flexible use of labour across traditional demarcation lines; growth through diversification and merger leading to corporate profiles that cover a multiplicity of industrial sectors and which reinforce devolution of decisions and performance measurement to s
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