Common Law provisions to be removed from Labour Act says Mugabe

The President, Robert Mugabe, has said the government will remove the Common Law provisions under the Labour Act, which had been used by employers to "unilaterally dismiss workers".

President Mugabe was addressing Parliament in what was probably the most anticipated State of The Nation Address at Parliament Building on Tuesday.

He said the current Labour Act has seen employees being sent away empty-handed with the employer emerging the winner in a relationship that must be a win-win.

He expressed displeasure at what he termed "obscene" packages being given to parastatal bosses, adding the government will soon embark on a parastatal reform to promote productivity and the ease of doing business.

He said corporate governance in parastatals has fallen to 'below minimally acceptable' standards. Ten parastatals have been targeted for reforms, said Mugabe. Among them is the Cold Storage Commission and the Grain Marketing Board.

The President also said the Companies Act will be amended together with the Procurement Bill before the end of 2015.

He said US$125 million has been set aside for the ongoing digital migration project which will see the revamping of the Zimbabwe Broadcasting Corporation's radio and television services to enable universal access to the people of Zimbabwe.

President Mugabe also said the government will build 53 rural health centres to improve health service delivery.

He said the tourism sector is expected to grow by 1.5% in the coming year.

Mugabe also said the government is targeting both internal and external investors in order to revamp the economy, urging diasporans to take advantage of the country's investment laws.