The Zambian Federation of Employers (ZFE) have won themselves a much stronger position due to a series of actions opposing governmental plans to raise minimum wages. ZFE’s membership increased by over 10 percent due to the lobby and negotiating process, among the newcomers being some big foreign investors.
Since its installation in the autumn of 2011, Zambia’s new left wing government under Michael Sata has been pushing for a general raise of minimum wages, one of its key election promises. On behalf of Zambian companies ZFE, who have a long term partnership with DECP, argued that an overall raise of minimum wages will only decrease the competitiveness of Zambian businesses and push more jobs into the informal sector.
The government and parliament have yet to decide on changes in the law concerning minimum wages.