Michael Gondwe: Collective bargaining Remarks by Dr Michael Gondwe, Governor of the Bank of Zambia, at the official opening of the Zambia Union of Financial and Allied Workers (ZUFIAW) Negotiations Forum – Phase 1, Lusaka, 20 March 2012. *  *  *    The ZUFIAW President, Mr Cephas Mukuka    The General Secretary of the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW), Mrs Joyce Nonde Simukoko    The Executive Secretary of Federation of Free Trade Union in Zambia, Mr Lyson Mando    The Representative from the International Labour Organisation    Workshop Facilitators    Distinguished Participants    Ladies and Gentlemen  I wish to welcome you all to this important Workshop, on Collective Bargaining, organized by the Zambia Union of Financial and Allied Workers (ZUFIAW). Let me take this opportunity to commend ZUFIAW for taking the initiative to organise this Forum, which is intended to facilitate exchange of information and views on aspects of effective collective bargaining. Mr President, as you are aware, in spite of the recent global economic crisis, our country has continued to enjoy relative macroeconomic stability, with favourable prospects for the future. As a result of consistent implementation of appropriate macroeconomic policies: i. The country has registered positive real GDP growth averaging 6.5% annually since 2007. This is a necessary condition for poverty reduction efforts;  ii. Inflation and exchange rates developments have also been favourable.
One important feature of the current globalisation wave is the integration of China, India and other emerging economies into the world trade system. This development has been strongest in China, whose share of world exports is growing rapidly. The countries within the Commonwealth of Independent States (CIS) have also increased their exports markedly since the early 1990s. India is at the starting-line. Many of these economies have large labour forces that offer their services at very low wages, and these labour resources are available to companies that compete on world markets. Low labour costs and more efficient transport and communication attract labour-intensive production. Production of goods and services is being transferred from high-cost countries to countries like Estonia, Latvia, Poland, China and India. This shift in the international division of labour is now influencing real wage growth in industrialised countries. The risk that a business will have to wind up operations or move abroad is dampening cost pressures, as bargaining power is being transferred from workers to employers. In a number of European countries, wage growth is also being influenced by increased labour inflows from the EU accession states. As Scandinavian consumers, we are benefiting from falling prices for many imported goods. Lower import prices are also ascribable to a shift in our imports towards a higher share of imports from lowcost countries. The change in clothing prices in Norway may serve as an illustration.