THIS week, I will discuss the minimum wage, which is regarded as one of the important means to fight poverty in Zambia and other countries around the globe.
Many employers become nervy and on edge whenever the subject is raised, with the major argument focusing on their ability to pay their workers.
The International Labour Organisation (ILO), through the International Journal of Labour Research(Vol. 4 Issue 1, 2012), defines minimum wage as one representing the lowest level of remuneration permitted, in law or fact, whatever the method of remuneration or qualification of the worker.
It is the wage which in each country has the force of law and which is enforceable under the threat of penal or other appropriate sanctions.
The minimum wage is meant to humanise social and economic issues of low-income groups, and to foster a richer appreciation of them.
It is important because it raises wages and reduces poverty. Proponents assert that the minimum wage is needed to protect workers from exploitative employment practices.
But opponents of the minimum wage claim that it is an unnecessary government intrusion into the relationship between employer and employee.
According to Centre for Poverty Research at the University of California, United States of America, the first minimum wage law was enacted in 1894 in New Zealand.
With the passage of the Fair Labour Standards Act of 1938 (FLSA), the US minimum wage was initially set at $0.25 per hour for covered workers.
Since then, it has been raised more than 20 times, with the one in July 2009 taking the minimum wage to $7.25 an hour.
The FSLA provided a number of federal protections for the first time, including payment of the minimum wage, overtime pay for time worked over a set number of hours in a work week, restrictions on the employment of children, and recordkeeping requirements.
In 1938, the Act applied to industries whose combined employment represented about 20 per cent of the labour force.
Coverage has expanded over time, and the wage now covers approximately 84 per cent of the labour force.
There are some advantages to the minimum wage which include reduction in poverty since it increases the wages of the lowest paid.
Increase in productivity is recorded because of a higher incentive, making people work harder and, therefore, increase output.
The minimum wage gives workers the needed amount of income from their work to survive and pay the bills, while it prevents companies from taking advantage of individuals, particularly in tough economic times.
There are also some disadvantages to the minimum wage. It can drive some small companies out of business, including non-profit organisations that may have a tough time covering wage costs for their employees.
It lacks uniformity. A universal minimum wage is difficult to set because of cost-of-living differences and other factors across the sectors of an economy.
If raised too high, the minimum wage may cause higher unemployment as well as inflate the costs of goods.
Labour Institute of Zambia executive director, Clement Kasonde says the role of the minimum wage is to promote social justice and growth.
Mr Kasonde states that according to ILO Convention No. 131, the primary purpose of the minimum wage is to provide protection for wage earners against “unduly low wages”.
It aims at setting a floor to the distribution of wages, below which no worker can legally be paid, says Mr Kasonde, who is a lecturer under the Centre for Labour Studies at Mulungushi University.
The Minimum Wages and Conditions of Employment Act, CAP 276 of the Laws of Zambia is promoted on the same principle as that of ILO.
Mr Kasonde further indicates that the Zambian legal framework also has Statutory Instrument (SI) No. 1 (Shop Workers) Order, 2011 read together with SI No. 47 (Shop Workers) (Amendment) Order, 2012, and SI No. 2 (General) Order, 2011 read together with SI No. 46 (General) (Amendment) Order, 2012.
The other one is SI No. 3 (Domestic Workers) Order 2011 read together with SI No. 45 (Domestic Workers) (Amendment ) Order, 2012.
Zambia has not yet ratified ILO Convention No.131 on the minimum wage fixing mechanism.
However, it has started implementing part of the object and spirit of the convention through the enactment of SIs dealing with the minimum wage process.
Some of the arguments in setting the minimum wage may be the size of a company and economic dynamics in an industry.
This is one of the reasons why employers have been advocating sector-based minimum wages.
In the case of domestic workers, there have been some interesting observations. For instance, should a maid serving a large family, with a multi-roomed house to clean, be entitled to the same wage as one working for a single person, or a newly-wed couple occupying a small flat?
These are some of the questions that still need satisfactory answers by all the interest groups as the debate around the minimum wage continues.
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The ILO Zambia office has scored a first by asking members of staff to lead the way in promoting the welfare of domestic workers in the country.
On Tuesday, the Domestic Workers’ Project in Zambia held a breakfast meeting for employers of domestic workers, targeting ILO staff.
ILO national coordinator, domestic work project – Zambia, Chana Chelemu-Jere said the purpose of the ILO internal campaign was to show that “charity begins at home”.
The breakfast meeting was held to commemorate the fourth anniversary of the Domestic Workers Day.
ILO adopted the Domestic Workers Convention, 2011 (Number 189) on June 16, 2011.
Ms Jere said the global campaign was launched on June 1, this year, as part of the build-up towards the celebration.
The commemoration this year was held under the theme ‘Decent Work for Domestic Workers Begins at Home’.
Ms Jere said the breakfast meeting provided an opportunity for ILO staff to get information on their rights and responsibilities regarding domestic workers, information on relevant national laws, regulations, and C189.
The meeting was attended by officials from the Ministry of Labour and Social Security, Zambia Federation of Employers, United House and Domestic Workers Union of Zambia, and the Association for Employers of Domestic Workers in Zambia.
The ILO employees were invited to pose for a picture holding a sign pledging their commitment to decent work for domestic workers.
Ms Jere said the employees were asked to post their pictures on Twitter and Facebook using the hashtag #DomesticWorkDay, adding that the pictures would be gathered on the ILO website.
This is the right thing to do as it shows that ILO employees are “walking the talk”.
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(This column is an initiative of the Ministry of Labour and Social Security. For comments or questions, email info@mlss.gov.zm or niza12001@yahoo.com)