Mulala says rising living costs, weak social dialogue and job insecurity continue to hit Zambian workers despite macroeconomic improvements, warns ZCTU President Blake Mulala

By Francis Maingaila ♥️ 
Lusaka, December 2025 — The Zambia Congress of Trade Unions (ZCTU) has observed that workers continue to struggle despite recorded macroeconomic gains, warning that rising living costs, weak social dialogue and job insecurity remain major threats to livelihoods.

Congress President Blake Mulala told journalists at the end-of-year briefing that while government has highlighted improvements such as debt restructurping and engagement with international financial institutions, these gains have not translated into better living and working conditions for the majority of Zambian workers.

Mulala said the assessment was based on the daily realities faced by workers across all sectors, including those who sustain families and keep public and private institutions running under difficult conditions.

 He said progress in some areas had been overshadowed by persistent economic pressure on workers.

He stressed that the statement was not partisan but a workers’ accountability scorecard on governance, the economy, labour rights and public service delivery, reflecting the gap between economic indicators and lived realities.


On governance, Mulala said Zambia had generally maintained political stability in 2025, which had helped preserve national calm. 

However, he said political stability alone had not shielded workers from economic hardship.

Mulala said democracy must extend beyond political tolerance to include economic and workplace democracy. 

He said workers expected inclusive decision-making on wages, labour reforms, pensions and social protection, but this had often not occurred.

He said workers’ voices were frequently considered late or ignored altogether, leaving many decisions disconnected from the realities of rising costs and job insecurity.

 Mulala said this disconnect reinforced the sense that economic gains were bypassing workers.

Commenting on the passage of constitutional amendment Bill 7, Mulala said the intense national debate reflected democratic maturity but urged Zambians to maintain peace and unity. 

He said social stability was essential, especially at a time when workers were already under economic strain.

Turning to the economy, Mulala said macroeconomic improvements had not eased pressure on household budgets. 

He said the cost of living continued to rise faster than wages, leaving workers struggling to meet basic needs.

Mulala said prices of mealie meal, fuel, electricity, transport and other essentials had increased sharply. 

He cited figures showing that the Basic Needs and Nutrition Basket for a family of five in Lusaka reached ZMW 11,079.13 by November, a level far beyond the reach of many workers.

He said inflation had severely eroded purchasing power, even for workers who received nominal salary increments. 

Mulala noted that inflation remained above the government’s 6–8 percent target range, prolonging financial stress for households.

Mulala also highlighted job insecurity as a key concern, saying some private sector employers had responded to economic pressure by retrenching workers, freezing wage negotiations or expanding casual employment.

He said the continued informalisation of labour had left many workers in precarious jobs without social protection, further exposing them to economic shocks despite the country’s reported recovery.

On labour relations, Mulala said collective bargaining had been increasingly constrained, particularly in the public service. 

He said restrictive directives had narrowed negotiations and weakened workers’ ability to respond to rising living costs.

Mulala said bargaining outcomes often failed to reflect inflation, productivity or cost-of-living realities, leading to frustration, low morale and declining trust in negotiation processes.

He stressed that collective bargaining must remain free and conducted in good faith, warning that fiscal discipline should not be used to suspend workers’ constitutional and international labour rights.

On pensions, Mulala said workers continued to struggle even after retirement, despite years of contribution. 

He said the absence of a lump-sum payment option left many retirees unable to meet immediate needs such as housing and medical care.

Mulala said delays in reforming the National Pension Scheme Authority had weakened confidence in the social security system, reinforcing workers’ fears about income security after retirement.

He said pension funds must serve contributors and not institutional rigidity, arguing that meaningful reform was necessary if economic gains were to benefit workers throughout their lives.

Mulala also raised concern over violations of the right to organise, particularly in the private sector. 

He said workers in hospitality faced intimidation, casual contracts and union busting, while agricultural workers were denied union access and paid below minimum wage.

He said such practices deepened exploitation and reinforced inequality, adding that economic growth built on silenced labour could not be considered inclusive.

Mulala called on government to strengthen labour inspections and enforce sanctions, saying workers’ rights must be protected if economic gains are to have meaning.

On public service negotiations, Mulala said workers had shown patience as talks continued. 

He said ZCTU had engaged government at the highest level and expressed hope for positive outcomes, noting that delays only compounded financial stress.

Turning to health, Mulala said workers continued to struggle to access quality services despite contributing to the National Health Insurance Management Authority. 

He said governance challenges had weakened confidence in the scheme.

Mulala said the failure to reconstitute the NHIMA Board had undermined accountability and stakeholder trust, stressing that workers, as the main contributors, must be central to its governance.

On energy, Mulala described the electricity crisis as one of the most damaging challenges to workers and livelihoods in 2025. 

He said reduced production, job losses and high generator costs had hit industries and small businesses hard.

He said households had also suffered through disrupted education, health risks and higher living costs, further eroding the benefits of any economic gains.

While acknowledging government efforts to improve power supply and add new generation capacity, Mulala said the situation remained unsustainable and continued to weigh heavily on workers.

On corruption, Mulala said abuse of public resources continued to undermine service delivery and public trust. 

He said workers ultimately bore the cost of corruption through poor services and lost opportunities.

He urged investigative institutions to act independently, recover misappropriated funds and ensure accountability without political interference.

Looking ahead to 2026, Mulala said workers expected stronger social dialogue, respect for collective bargaining, protection of the right to organise, pension reforms, functional NHIMA governance, reliable electricity supply and economic growth that improves livelihoods.

He said workers remained committed to national development but stressed that unless economic gains translated into real improvements, they would continue to struggle.

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