2000 workers to lose their jobs in Zimbabwe

Published: 12 March 2014

Over 2000 workers are set to be laid off this month with more companies earmarked to retrench more workers in the coming months, The Zimbabwe Congress of Trade Unions (ZCTU) has revealed.

ZCTU secretary-general Japhet Moyo called on government to quickly implement Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) to avert what he called a national catastrophe.

"The formal sector is shrinking if we are to take report we compiled into consideration. In 2012 1,3million workers in Zimbabwe were formally employed, while in 2013, the number shrank to 1,2 million. That variance is set to continue in 2014 unless government does something as a matter of urgency," said Moyo.

Moyo said 2000 workers were set to be retrenched by the end of March alone.

"Retrenchment is still on going despite reassurances from government that things are going to normalise this year. In reality we are soon going to be an informal sector economy.

On February 27 2014, the Retrenchment Board which is chaired by a government representative and comprises of labour movement officials and people from the business sector, approved the retrenchment of 295 workers.

As we speak, the Retrenchment Board will anytime from now, approve the retrenchment of a further 1 770 workers before the end of this month," said Moyo.

The struggling Chitungwiza Town Council is set to retrench 968 workers, Deven Engineering 24, FML Oils 19, TN security 84, Lifestyle Holdings 349, Willowvale Motor Industries 101 and Zimasco 225 employees.

The ZCTU called on government to create an enabling environment for companies to fully operate.

"We would have hoped that government would come in to arrest this trend by looking at the challenges we are facing as a nation and give remedies.

If it means recapitalisation and bailing out struggling companies, let it be so.

"We also are of the opinion that government must create a business-free environment augmented by friendly pieces of legislation.

"We also hope that ZimAsset would be able to steer the economy to improved heights," said Moyo.

Over 9 500 workers were retrenched from companies right across the country during 2013 while 75 companies in sectors such as clothing, engineering, furniture, metal, tobacco, textiles, chemicals, commerce, food, agriculture, catering and pulp and paper, closed down.
- zimmail