Federation of Employers shocked by PF’s unilateral increase of retirement age

The Zambia Federation of Employers (ZFE) says it has received Cabinet’s decision to increase the retirement age from 55 to 65-years with shock.

Speaking to QFM News, ZFE Executive Director Harrington Chibanda says it is sad that the views expressed by the labour movement on the issue earlier have not been considered.

Mr. Chipanda says the Zambia Federation of Employers together with the Zambia Congress of Trade Unions (ZCTU) was against the idea of increasing the retirement because government failed to come up with convincing reasons for doing so.

He noted that the matter is in the technical report of the constitution making process and was supposed to be discussed by Zambians so that they agree whether the retirement age should be increased or not.

Mr. Chibanda says government’s decision to increase the retirement age without the issue being conclusively debated by the Zambian people lives one wondering whose interest government is serving.

He adds that government should have waited for the consultative process by the labour movement who represent the interest of the workers, and had initially opposed the increase in the retirement age.

Mr. Chibanda points out that an employee is more productive below the age of fifty five, stating that issue of health start coming in above that age which may make them not to be so effective in carrying out their responsibilities.

He says he is aware that government is looking at the whole issue from the angle of delaying the payment of pension benefits so that the money still remains in the economy in the pension schemes.

Mr Chibanda has further stressed that the implications are so many hence government should have left it to the people themselves to decide.
He since urged government to consult stakeholders on critical issues.

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