inflation is detrimental to our economy because of the following reasons : i. makes planning difficult for economic agents ; bis central bankers ’ speeches ii. companies and consumers are unable to draw up effective investment and expenditure plans ; iii. government is also unable to make good projections of revenue collections and thus unable to effectively plan its current and capital expenditures ; iv. relative prices are distorted leading to inefficient allocation of resources ; v. high cost of investment as interest rates skyrocket ; vi. savings propensity is low as savers are discouraged by negative real interest rates ; vii. in an inflationary economy, interest rates are high and borrowing for investment is inhibited, which leads to : limited access by productive ( private ) sectors to investment funds ; low investment, output and employment ; and lesser impact on the social sectors. ladies and gentlemen, as you share thoughts in this workshop, allow me to underscore the importance, we at the bank of zambia attach to capacity building programmes for all employees in the financial sector. i am reliably informed that during the workshop you will cover a number of important topics including the following : i. analysing the framework for collective bargaining and exploring new trends in collective bargaining ; ii. enhancing negotiation skills and knowledge base of union officials ; and iii. developing a pool of professional union negotiators in zufiaw. i am fully aware that some of the topics that you will be discussing during this forum may not be entirely new to you, but i firmly believe that they may be necessary for purposes of reinforcing what you already know. i therefore, urge you all to take keen interest in all the deliberations if you are to realise the full benefit of the workshop. mr president, no company can sustainably grow if it does not provide mechanisms by which employees can influence their working lives. labour is more than a commodity. unlike non - living factors of production, such as, machinery and raw materials, the work of human beings raises questions about the impact of work and work relations. as you review your collective agreement frameworks, i wish to remind you that there are a lot of common interests and important interdependencies between employers and employees despite the apparent conflicting interests. for instance firms need workers and workers need jobs. ladies and gentlemen, there can be no true bargaining without prudent and effective leadership on either side of the table. this kind of leadership is required for us to achieve our collective objectives.

we are desirous of seeing a union leadership, which is well - informed and constantly upgrading their leadership skills for the attainment of organisational goals and workers welfare. in conclusion, i wish to once again implore you to actively participate and take a keen interest in the deliberations of this forum. it is my expectation that you will have an opportunity to carry out an appraisal of your individual and collective skills and how they impact upon the job market and workers welfare in the financial sector. with these remarks, ladies and gentleman, i declare this forum officially open. i thank you bis central bankers ’ speeches