HARARE (Zimbabwe Investor) - The recent failed wage negotiations between employers and employees in Zimbabwe, leading to a nationwide strike by civil servants, have revealed the true state of a society stuck in the unrealistic environment of the past decade where the only needs that mattered were one’s immediate.

Labour unions across the economy all came out declaring that their members were not settling for anything less than a minimum wage of US$400. Civil Servants have now called a nationwide strike because their own demand for a minimum wage award of US$630 can not be met. It is not clear where the unions got these figures from but there is a huge suggestion of “let’s go as high as possible and hopefully we will end up with something good” approach which could prove costly to their efforts.

For a country with an economy smaller than a single developed country’s supermarket chain, the demands by the labour force in Zimbabwe are laughable if they were not tragic. It is perfectly plausible that the unions are informed by the need to improve their members’ plight but the formula with which they used to arrive at their figures remains questionable.

In exactly whose favour do the demands work if met? Is it possible that the unions have simply calculated backwards what they want their members to contribute to their coffers and come up with a minimum wage that will give rise to that amount?

The figures demanded by Zimbabwe’s unions compete with the rates ongoing in some developed western economies. In fact such wages can not be obtained in any developing country including the leading emerging markets China, Brazil and India. Even in Africa’s economic powerhouse South Africa the average minimum wage is about US$190 per month.

Trade Unions have been instrumental across the globe in stopping any exploitative practices which corporations may employ in the capitalist system. The influence of unions resonates in the corridors of many central governments playing a huge party both economically and politically. Unions do wield political and economic muscle that their actions can be a force the ultimate economic and societal good or can in equal measure devour a country’s well being. In their consciences therefore a great sense of responsibility must reside.

The labour force is the primary and most pivotal means of production of any economy, therefore both employers and employees must be guided by that fundamental in any engagements they make.

The demands of the labour unions in Zimbabwe lack rationale especially in an economy which has barely re-surfaced from near-abyss. Unions need to be able to point to the product of their sweat to back up any demand. Zimbabwe’s case appears to be one of union leaders plucking figures from the air, actions which are in fact a disservice to their members and likely to hurt their cause more than their employers ever could.

To boost productivity in the country, Zimbabwe needs to move away from a monthly or weekly calculated wage system and gravitate towards an hourly rate system. The hourly rate system will ensure that employees are paid only for the hours worked and cumulative benefits. The hourly rate system cultivates a culture of an “honest day’s work” in the labour force while promoting a reward centred management which recognises performance and payment of the associated dues.

The collective bargaining platform has been abused over the years and a new economy oriented system of wage negotiations must be explored before it is too late. The current extremely strict labour laws and all powerful unions who always think of industrial strike action as the only tool to force the hand of their employer is not sustainable.

An honest agreement needs to be reached by all players which recognises the state of the economy and puts obligations on all to play their part in growing the national cake.

Employers must sign up to honour obligations that they will manage their businesses in a transparent manner not deliberately prejudicial to their employees and their interests. The employees on the other hand must agree to be true to their productivity efforts. Civil servants in particular have a lot to do to gain the confidence of the nation that their wages are truly tax payers’ money being well spent because service delivery as we all know seems to suggest otherwise.

The culture of reward expectation for no work completed must come to an end.