Some trade union movements have welcomed the intended increase by the government to add a 10 percent notch on the current 20 percent partial withdrawal, under the National Pensions Schemes Authority (NAPSA). Zambia Union of Government and Allied Workers (UG) president, Muyaywa Kabisa indicated that any efforts aimed at ensuring that government employees have an opportunity to engage in investment ventures while in employment are highly welcome. Speaking in an interview with the media, Dr.
Kabisa stated that many employees are in so much debt because of lack of disposable incomes and this has pushed many employees into destitution. “Where the government comes up with interventions that can ensure that employees have access to their contributions and invest those now, as a trade union movement we would highly appreciate those intentions,” Dr. Kabisa said.
He added that once employees prudently utilise partial benefits by investing and reinvesting the proceeds in ventures of their own choice, one is assured of being in control of their contributions. He acknowledged that some would argue that this move may reduce future expectations, but that it is an assurance of one’s future financial picture rather than waiting for a pension at the end of employment. Meanwhile, Dr Kabisa also welcomed the current reforms being implemented stating that they are well intended and all government employees will appreciate them once rolled out.
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“We recently had the tripartite consultative labour council where we extensively looked at the proposal from the technical committee tasked with the assignment of ensuring that pension reforms are a success and our view is that it is a welcome move,” he added. He therefore urged employees to focus on investment rather than consumption, stating that regardless of how little it is, their prospects of growing it in the current conducive environment is high. And the Federation of Free Trade Unions of Zambia Secretary General, Nelson Mwale said that the idea to empower workers is a step in the right direction.
Mr Mwale stated that the federation takes the additional 10 percent on the already existing 20 percent partial withdrawal as a positive step towards the empowerment of workers. He however argued that the move would however benefit more, those that have served for many years compared to those that have served few years in service.
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