ZIMBABWE:Zimbabwean labour and business leaders began talks with the government yesterday on a wage and price freeze, but union leaders doubted that a deal would emerge to rescue the country from economic collapse.
President Robert Mugabe's government hopes that a freeze would arrest galloping inflation, the highest in the world at almost 1,600 per cent.
But labour leaders have said they doubt that the government is willing to give in to demands that political reforms be included in any recovery package.
The country's largest labour body, the Zimbabwe Congress of Trade Unions, which has called for a two-day strike in April, took part in the meeting.
The labour minister, Nicholas Goche, told the meeting that the government was eager to negotiate and would honour any agreement coming out of the talks, including an as yet unimplemented pact hammered out in 2001 - a key union demand.
"This will . . . provide a conducive environment for the discussion and conclusion of a social contract," Mr Goche said.
The 2001 agreement, which Mr Mugabe's government did not sign, calls for reforms to address Zimbabwe's "political risk factor" following sometimes violent seizures of white-owned farms under a land redistribution drive.
The agreement asked the government to shore up respect for property rights and the rule of law to help attract much-needed trade and investment.
Political tension has been mounting in the country over an economic crisis which has sparked a series of strikes as workers battle against inflation. Analysts have warned that the worsening economy could trigger anti-government street protests.