THE UNIVERSITY OF ZAMBIA

DEPARTMENT OF ADULT EDUCATION AND EXTENSION STUDIES

INTERNAL MEMORANDUM

SECOND HAND OUT

INDUSTRIAL RELATIONS

1.0 EVOLUTION OF INDUSTRIAL RELATIONS IN ZAMBIA

1.1 Industrial Relations in the colonial period

 The early development of IR in Zambia can be traced to the development of paid

employment along the line of rail and especially on the Copperbelt.
 The first major mining operations involving copper exploitation were at three
mines in Mumbwa district that started in 1923. The three mines were the first
large copper mines in colonial Zambia making Mumbwa district the forerunner to
the present day Copperbelt.
 As a consequence of the discovery of many copper occurrences to the north of
Mumbwa, especially at Luanshya in 1925 and the subsequent large-scale mining
operations, there was a widespread rural-urban migration of people in search of
paid employment around the Copperbelt and along the line of rail.
 Migration was in part fueled by the colonial government demand for poll tax from
each adult African male. Migration occurred from all over the country including
migrants from neighboring countries such as Congo, Malawi and Tanzania.
During the period 1924 and 1931 hundreds of Europeans flooded into the district
and thousands of Africans belonging to dozens of tribes from every part of
Central Africa.
 The large scale mining operations led to the development of other industries
notably agriculture along the line of rail to provide food to the growing population
of the new towns on the Copperbelt and along the line of rail.
 A combination of economic and political factors compelled Africans to enter the
labor market. As Africans became dependent on the exchange economy for basic
requirement, the colonial administration inaugurated (disguised) forced labor,
taxation and land expropriation.
 With the introduction of the Land Apportionment Act of 1931 and the
institutionalization of separate African and European pricing system for maize,
Africans were pushed into (native reserves) where declining productivity and
increasing costs of transportation combined with falling agricultural prices
reduced their earnings from agriculture.
 This meant that the food production for the market increasingly became the
monopoly of the white European settler farmer, who was given preferential
treatment by the colonial government.
 Africans had no choice but were compelled to enter the labor market in increasing
numbers, especially in the mines to sell their labor power for a wage.
 However, the African worker in the mines was treated unfairly compared to the
European who enjoyed better treatment. Although the mining companies provided
basic housing and other social amenities including food rations for its employees,
amenities were segregated even at places of work. There were different change
rooms for Europeans and Africans.
 Both white and black workers pressured the mine management to treat their group
fairly: the whites to be recognized as superior and therefore deserving better
conditions and pay; the blacks to be recognized as deserving the same as white
workers since they were doing the same jobs. Management circumvented the
responsibility for voluntary reform but instead practiced racism and greed, and
also helped to push for federalism.
 Management failed to meet these demands and looked to the Federal government
to assist in quelling the black demand and unrest through legislation and
detentions of union and political leaders.
 The differences in treatment of white and black workers by the mine management
fueled the creation of trade unions.
 In 1935 and 1940 miners on the Copperbelt organized two major industrial
actions (strikes) which commenced a forceful struggle against industrial
exploitation on the one hand and colonialism on the other. A number of miners
were killed and some of them were arrested.
 In 1947, African workers in Northern Rhodesia began to organize themselves to
form trade unions in order to resist the unfair treatment at workplaces. In 1952.
The Northern Rhodesian African Trade Union Congress was formed led by
Lawrence Katilungu as president general.
 At the same time the European workers organized themselves to protect their
interests and maintain the status quo.
 During 1950s several legislations were passed. The most significant of these was
the Trade Union and Trade Disputes Ordinance which provided for compulsory
registration of trade unions, powers to inspect union books, powers to authorize
an inquiry in the affairs of unions and powers to disqualify an officer of a trade
union deemed to be inimical to industrial peace.
 In 1956 the African mine workers union went on strike that culminated in the
declaration of a state of emergency that resulted in the arrest and removal of
principal agitators.
 Political development between 1959 and 1961 affected unity in the labor
movement. Many labor leaders left ANC to join UNIP. In 1961 there was a split
in the labor movement because the majority of trade unions supported UNIP and
broke away from the Trade Union Congress to form the Reformed Trade Unions
Congress.
  The Northern Rhodesia African Mine Workers’ Union remained in the Trade
Unions Congress under Lawrence Katilungu. It continued to support the ANC
until when Katilungu was expelled later in 1961.
 Following the expulsion of Katilungu made the unification of the labor movement
possible. Therefore, in 1962, the Reformed Trade Unions Congress and Northern
Rhodesia Trade Unions Congress became united under ‘United Trade unions
Congress.
 The unified labor movement fought hand in hand with UNIP to achieve political
independence. This struggle ended up in the breakup of the federal government
system and the granting of self-government to the African politicians and
eventually independence.

1.1.1 Conclusion

 This development in the mining industry is testimony to the failure by the mining
managements of the day to adequately deal with labor issues much earlier. It was
the effect of confrontation between management, workers(both black and white),
colonial government and the unions that led to the development of IR in Zambia.

2.0 Industrial relations in the First, Second and Third republics

1) IR in the First Republic

- IR in the Post Independent Zambia
 The involvement of trade unions in the political process that was very visible in
the colonial era continued after independence. But while the political alliance
between trade unions and nationalist movements was purposely to gain political
independence, the continuing of labor in politics afterwards was essentially to
protect and promote workers’ rights under the new ruling elite.
 At independence, Zambia was a multiparty state. This period extends from 1964
to 1972, and it is known as the First Republic.
 In terms of post-independence legislative developments the Trade Unions and
Trade Disputes Act of 1964 was the earliest piece of legislation to regulate trade
union activities
 The economy during this period was a free market economy, and all companies
including mines were privately owned.
 During the first republic, the United National Independence Party was the ruling
party with humanism as their ideology. All national programmes in the country
were based on humanism which aimed at achieving a just society. Under
humanism Zambia practiced a mixed economy. This was an economy where there
was a mixture of capitalism and communism.
 However, the UNIP government under Dr Kaunda was not happy with the free
market economy due to:
a) Firstly, the companies that controlled the Zambian economy were owned by
foreigners. UNIP argued that this was not good because the wealth of the
 country was benefiting foreigners and not Zambians. It felt that political
independence without economic independence was meaningless.
b) Secondly, Dr Kaunda developed the philosophy of humanism which was
based on socialism and socialism teaches that the government should control
the economy to ensure fair distribution of wealth. Therefore, in 1967 and 1968
the UNIP government introduced economic reforms called Mulungushi
Economic Reforms that transformed the economy from a free market
economy to a command economy. This led to the nationalization of big
companies as well as ownership of land from private individuals/companies to
the state. In 1969 Dr Kaunda announced the nationalization of big mining
companies on the Copperbelt under the Matero Economic Reforms.
 The reforms meant that Zambia’s economy came under government control. The
government controlled or owned companies called parastatals which produced
70% of Zambia’s GDP.
 These parastatals were supervised by the Zambia Industrial and Mining
Corporation(ZIMCO) which was chaired by President Kaunda. This was a very
big organization that supervised financial, manufacturing, trading, agricultural,
transport, energy and travel agencies,
 The government enforced price controls, decided how much a good or service
should cost. Business persons who did not follow government approved prices
could be prosecuted.
 From its inception the labour movement in Zambia has not been spared from
political interference, abuse or control. During the struggle for independence the
labour movement constituted an active ally of other nationalist movements. When
independence was achieved in 1964 the government in power, wanted to extend
the symbiotic alliance to actual control.
 When this could not be achieved the state used its powers under the law to deal
with dissension from the labour movement, as the labor movement remained a
viable force in the fight against repressive tendencies of the regime. This fight
widened the gap between the ruling party and the labour movement as labour
leaders were considered as threats by the ruling party.
 In some instances, the state achieved control of labour movements through
incorporating labor leaders in the main stream structure of the ruling political
party and appointing them as members of the ruling party’s central committee.
 The labour movement also witnessed its incorporation on the ruling party’s
national council based on the principle that the party was supreme.
 These and many other overt and covert overtures and acts on the part of the state
towards the trade union movement demonstrated government perception of the
labor movement as a pillar of formidable influence. It also shows that the state
machinery could take appropriate steps in order to control and weaken the labour
movement.

2) IR in the Second Republic

- IR in a One party state
 In order to provide legislative framework for the establishment, organization and
management of trade unions, employer’s organizations and their federations, the
 Industrial and Labor Relations Act Cap. 269 of the Laws) was first enacted in
1971. This Act provides for collective bargaining, settlement of industrial
conflicts, consultative mechanism and the establishment and operation of the I R
Court.
 Following the political violence among political parties of the first republic, the
UNIP government quickly moved towards the formation of a one party state. The
Chona Commission of enquiry was used to make recommendations for the
formation of a one party state.
 By 1973, a new constitution was put into place. It introduced the one party state.
This became known as the second republic. The second republic constitution
outlawed all opposition parties in Zambia. The ideology of the nation continued to
be humanism.
 The relationship between the state and the labor movement, particularly during
the period 1969 to 1991, was based on suspicion and therefore acrimony.
 Underlying the unsatisfactory IR scene was the apparent conflict and rivalry,
between the labor movement and the government. This explains why, for
example, all the strikes that took place between 1964 and 1991 were illegal
because they were taken without exhausting the legal procedures. However, the
procedures precedent to a strike were unrealistic, hence a policy of ‘strike first
and talk later’ was the established norm.
 Generally, it can be said that Zambia experienced the largest number of strikes
between the years 1964 and 1971. The highest number of strikes registered in one
year was 1161 in 1969. This was attributed to wage demands and demands for
better conditions of employment by workers in almost all sectors of the economy.
However, these could also be attributed to unfulfilled post-independence
promises.(See the Annual Report, Labour Department, 1970).
 After 1971 the number of strikes was comparatively on the decrease except for
the dramatic change in 1980 and 1981 which registered 121 and 156 strikes
respectively. This was partly due to the high cost of living with the labour
movement calling for substantial wage increases and also partly due to the sharp
differences between the labour movement and the government over the latter’s
stand to introduce a decentralized system of local government which resulted in
the expulsion of the ZCTU leadership from the ruling party. (Times of Zambia 21
and 26 Jan. 1981).
 The conflict between government and the labour movement worsened and
adversely affected the IR system in the country when the government detained the
nucleus of the labour leadership which included the Chairman General of the
ZCTU, Frederick Chiluba, although they were later set free when they contested
their detentions in courts of law.(Times of Zambia July 28 and October 29 1981).
 The issue became so emotive particularly on the Copperbelt, the nerve-centre of
the country’s IR that, in an attempt to resolve the conflict with the miners, the
Minister of Labor was physically manhandled by the irate miners. In an early
morning address to the nation one and half weeks later the President alleged that
the wave of strikes that had engulfed the nation were instigated by the labor
leaders for political objectives to take over from President Kaunda’s government.
(Times of Zambia 28 July 1981).
 The above reasons, although far from exclusive, would sufficiently account for a
sudden increase in number of strikes in the second republic. In addition, it is a
period during which the inflation rate of consumer prices was growing while the
GDP was low. Therefore, the labor movement justified its wage demands in the
eighties on inflation, resulting in high prices for goods and services. In such a
situation the labor movement, which was united and formidable arose to the
occasion.
 In an attempt to control wage inflation the government had taken a number of
measures including the imposition of wage ceilings and by requiring that any
increase must be approved by a competent government authority.
 By 1985, the government was increasingly getting a lot of criticism because of the
poor state of the economy. There was general lack of foreign exchange, fuel and
essential goods in the country.
 The ZCTU blamed the government for the economic problems the country was
going through. Meanwhile, food riots broke out on the copperbelt in 1986. Food
riots also occurred in Lusaka on 25 th June, 1990. The food riots were sparked off
by an increase in the price of mealie meal. During the food riots there was an
abortive coup by one of the soldiers. When the attempted coup was announced
people took to the street to celebrate the end of the UNIP government.
 The food riots and abortive coup motivated people to pressurize the government
to re-introduce multi-party democracy.

3) IR in the Third Republic

- Effect of return to Plural politics on IR
 After the 1973 constitution designed for a one party system was repealed in 1991,
a new constitution was enacted which created the third republic. The trade unions
were particularly instrumental in bringing about this political change and some of
its officers held top positions in the new government including that of state
president.
 The opening up of the political scene triggered agitation for similar let up in the
IR arena where hitherto monopoly trade unionism was the order. Hence in line
with international standards on freedom of association, the law and practice were
ultimately attended to also allow a plural dispensation.
 Following the onset of multi-party system, the trade unions resolved to adopt a
neutral position in relation to political parties but vowed to work with the
government of the day. Since then, the trade unions have maintained a reasonable
distance from political parties without impairing the right of their individual
members to join or support a political party of their choice.
 The last two decades were characterized by transformation of the Zambian
economy from one where the state played the leading role not just in policy
formulation but also in the ownership and management of industrial enterprises,
to one with a highly liberalized economy.
 The main thrust of the transformation and reform was the liberalization of the
economy which involved the removal of deep rooted distortions created by earlier
policies.
 The package of reforms included removal of the protection of the domestic
markets, as well as abolition of subsidies and all forms of controls – prices,
exchange rates, interest rates, together with formidable monetary policy.
 The major effect of the liberalization programme in Zambia in terms of labor
market was the large scale retrenchments and layoffs of workers arising largely
from restructuring of companies and work force rationalization measures aimed at
improving the efficiency of companies following privatization. The loss of
employment also arose from the closure of inefficient enterprises that were not
able to withstand foreign competition.
 In terms of trade union membership, the employment losses arising from the new
economic policy dispensation obviously meant reduced trade union membership.
 For a long time until the 1990s, the labor movement in Zambia was not only a
united force, it was one of the most effective and influential labor movements in
Southern Africa.
 The ZCTU since its establishment in 1964 until 1990 was enjoying the favorable
principle of one union in one industry, which seems to have been a reward for its
participation in the struggle for independence, and as an inducement for continued
cooperation. Under this policy, all the industrial unions were compulsorily
affiliated to the Congress. This favorable policy gave the Congress a formidable
voice in the country’s socio-economic development.
 The principle of one union in one industry has more advantages than
disadvantages. It provides the spirit of good IR and a strong trade union
movement. It also avoids the problem of multiple representation and its associated
inter union conflicts, multiplicity of negotiations within the industry as well as the
problem of overlapping membership.
 Proliferation of unions also has the disadvantage of promoting industrial
disharmony which has the ultimate effect of compromising trade unions in their
collective bargaining engagements and other IR obligations.
 Indeed, the period between 1971 to1991 was the era of capacity building with
legal support of the trade unions. By 1990 the ZCTU had organizational structures
similar to those of UNIP across the country.
 The overwhelming success of the movement towards democracy in 1990/1 was
largely due to the organizational structures of ZCTU which the MMD took
advantage of and used.
 The advent of political pluralism in 1990 was used to justify the liberalization of
the labor movement by the UNIP government through the Industrial and Labor
Relations of 1990 that they amended.
 This Act was strongly opposed by the MMD while they were still in opposition
which they perceived to be divisive of the labor movement. However, when the
MMD got into power, they did nothing significant to address the divisive
character of the law.
 Instead the industrial and labor relation Act of 1993 introduced by the MMD led
to a liberal registration of trade unions putting the labor movement in disarray due
to the formation of more splinter unions.
 With regards to employment, total formal employment fell sharply between 1985
and 1997. The decline in employment was more severe in such key sectors as
 mining, manufacturing and construction. However, employment grew in areas
such as trade, finance and services. There was also an increase in casualization of
workers.
 The declining employment trends have been attributed to the privatization
programme which has been associated with job losses. This also has a direct
effect on the levels of unionization.
 For example, public corporations liquidated between 1992 and 1994 deprived the
labor movement of a substantial membership as a result of which more than
fifteen thousand estimated jobs were lost. In 1991 the mining sector accounted for
over 64 000 employees. Following the privatization of the mining companies, in
2000, the mining and quarrying sector accounted for only 35 000 employees.

 Those ejected from employment, either by virtue of privatization or liquidation,

have had little protection from the movement which had been left helpless as the
law on collective bargaining does not allow a negotiated package for retrenched
workers.

THE END