ZAIRE The right to strike is included in the labor law, but because the law establishes lengthy and mandatory arbitration and appeal procedures, legal strikes have been rare. In 1990 however, strikes by both white-collar and blue-collar workers have been numerous. Several of the new unions have undertaken strikes to press their demands, but few have received what they view as satisfactory responses. Civil servants returned to work in October 1990 after a three-month strike and partial concessions by the government. The teacher's union has complained that the Ministry of Education declined to bargain with them. b. Right to Organize and Bargain Collectively Neither UNTZA, which has the right to bargain collectively with employers, nor the new unions, which do not yet have legal status, are able to protect worker interests or defend worker rights which run counter to government policies. Over the last few years, UNTZA has freely negotiated nearly 1,000 collective bargaining agreements. Under the UNTZA/ANEZA (the employer's association) agreements, wages and prices have been fixed jointly on an annual basis. Government supervision of this process is minimal. Given greater union competition, it is unclear how much influence UNTZA will now have in this process. The UNTZA is charged with implementing government programs to improve worker benefits. It is also unclear to what extent the competing unions will be similarly charged following the authorization to operate. C. Prohibition of Forced or Compulsory Labor The Constitution and Labor Code forbid forced labor and there are no indications that it is practiced. d. Minimum Age for Employment of Children The legislated minimum age for employment is 18, although those between the ages of 14 and 18 can legally engage in "light work" if a parent or guardian consents. Many children under 14 work in the informal sector, especially in subsistence agriculture where minimum wage, safety and health standards are not observed. e. Acceptable Conditions of Work The majority of the population is engaged in subsistence agriculture and small-scale commerce outside the formal sector. In recent years income in the modern economy has not kept up with inflation. Public sector remuneration remains low, and workers may engage in corruption or take second jobs in the private sector to supplement their income. The maximum legal workweek is 48 hours with a required 24 hour period. The Labor Code specifies health and safety standards but enforcement is minimal. f. Rights in Sectors with U.S. Investment These There are U.S. investments in the petroleum, manufacturing, agribusiness, and service sectors. enterprises are subject to the labor laws that cover all Zairian workers. There is no forced labor or child labor at ZAIRE U.S. companies in Zaire. Although health benefits and salaries are low at some companies, they generally compare favorably with local practice. (D)-Suppressed to avoid disclosing data of individual companies Source: U.S. Department of Commerce (unpublished) * Section 8 is an abridged version of Section 6 of the Zaire country report included in the Department of State's Country Reports on Human Rights Practices for 1990, submitted to the Congress January 31, 1991. For a comprehensive discussion of worker rights, please refer to that report. Sources: Australian Bureau of Statistics, Embassy Estimates. 1. General Policy Framework Australia's economy for 1990 had a gross domestic product (GDP) of A$257.2 billion, but suffers a declining real annual growth of about one percent. Although in area Australia is the size of the contiguous United States, its markets and production capability are limited by a small domestic population of 17 million people. In Australian Fiscal Year (AFY) 1989/90 (ending June 30), manufacturing accounted for 17.3 percent of GDP, farming 3.8 percent, mining 7.5 percent AUSTRALIA and services and other production 71.4 percent. Primary agricultural and mineral products account for 67 percent of exports. Australia leads the world in wool production, is a significant supplier of wheat, barley, dairy produce, meat, sugar, and fruit, and a leading exporter of coal, minerals and metals, particularly iron ore, gold, alumina, and aluminum. To increase Australia's international competitiveness, the government has continued to reduce protective trade barriers and deregulate large segments of the economy. The most notable successes were the deregulation of the steel industry on December 31, 1988, and the aviation industry on October 30, 1990. Trade reforms begun in June 1988 have resulted in an end to import quotas on all but three product categories (textiles, clothing, and footwear) and lower tariffs on most imports. In its AFY 1989/90 budget, the government announced expiration dates for bounty subsidies to most of those exporting industries still receiving such assistance. The exceptions were a new five-year bounty on coated photographic film in 1989 and extension in November 1990 of the bounty on computer manufacturing to December 1995. The 20 percent preference given by the federal government to Australian and New Zealand firms bidding on government contracts was abolished November 1, 1989, although the states and some territory governments continue to apply preferences. Responding to an overheating economy in 1988, the government tightened monetary policy to curb consumption and imports. A policy-induced economic slowdown became apparent in the third quarter of 1989 and sharpened thereafter. Although federal elections in March 1990 were held against the backdrop of an economy slowing visibly under these restraints, the Labor Party was returned for a fourth consecutive three-year term. Australia's economic outlook has weakened steadily in 1990. After years of impressive gains, employment growth has slowed. Unemployment is rapidly increasing (7.7 percent expected by the end of 1990) and manufacturing output is stagnant. Wage growth and inflation are running in excess of 7 percent, while net external debt remains high at A$125 billion. Oil price increases in the third quarter of 1990 contributed to rising costs throughout the economy. The economy entered a formal technical recession with the July-September GNP data released in November. The challenge to the government is to avoid a deepening recession while returning the economy to sustainable growth rates. A successful turn-around will depend not only on the measured relaxation of policy restraints, but also on export-led growth and stable external markets and tourism. Despite a recent easing of monetary policy and an improvement in the current account, the economic forecast remains clouded. Business and consumer confidence alike have been hit by a run of significant failures in the corporate and financial sectors. For the third consecutive year, the government has recorded a revenue surplus. Because of the surplus, the government was able to announce personal tax reductions averaging about 15 percent for AFY 1989/90 and labor unions AUSTRALIA are pressing for further reductions in AFY 1990/91. Public sector borrowing has been zero for the last two fiscal years, and callable public debt is being retired as rapidly as terms permit. Additional debt was retired in AFY 1989/90 through reverse bond tenders (offering a premium to holders to turn in outstanding bonds before maturity) and Reserve Bank swaps. Foreign debt reductions were further helped by a relatively strong Australian dollar exchange rate. Private investment is stimulated through a variety of government programs. Firms operating in Australia can qualify for some or all of the following: tax breaks and bounties for certain local manufacturing; tax incentives for Research and Development and export programs; some energy and labor subsidies; local government investment and location incentives; and, although diminishing, some types of trade protection. Except for three sectors requiring substantial Australian ownership (media, urban real estate, and some mining) and rules governing foreign takeovers of Australian firms, all other investments located in Australia receive national treatment. Industry deregulation and government decisions made September 6, 1990, to privatize 100 percent of Australian Airlines and 49 percent of Qantas are expected to lead to substantial liberalization of the rules governing ownership in the aviation sector in 1991. Investment mandated by offset requirements (see part five, below) has been a problem for some investors. Australia has few legal disincentives to investment. Most investors find Australia's labor laws more protective than in other countries, especially restrictions affecting assignments of non-Australians to positions in foreign-owned firms. Because of skill and managerial shortages, these restrictions were liberalized in early 1989 for firms required to meet offset obligations. The industrial relations climate is also a major investment consideration. Wages are established annually through a tripartite national bargaining and arbitration mechanism involving representatives of the unions, business management, and government. Individual investor influence in this process is limited. In February 1990, reserve levels required from banks, termed "non-callable deposits," were fixed at one percent of a bank's assets. These deposits with the Reserve Bank of Australia earn a below-market rate of interest that is no longer manipulated as monetary policy. For check clearing purposes, banks must maintain an exchange-settlement account balance that cannot be negative at the end of each day. If The cash-money supply is now totally controlled through an open-market trading system of nine dealers who act as a conduit between the Reserve Bank and the financial system. Transactions may involve purchases, sales, or trade in repurchase agreements of short-term Treasury securities. liquidity conditions warrant, the Reserve Bank may bypass dealers and buy short-term Treasury Notes direct from banks on a cash basis. Banks do not normally hold liquid deposits of any size with the Reserve Bank. Instead, they hold call-funds with the dealers. If a bank needs cash on a given day, it either borrows from other banks or withdraws funds it has on deposit with the authorized dealers. |