Share

Zim loses 20 000 jobs after fire ruling

Harare - Zimbabwe has lost 20 000 jobs in the last month after a court ruled that companies can fire workers by giving them three months' notice, the main labour union said on Sunday, as the government moved to amend the labour law to stop further losses.

Businesses in the southern African country, which has a jobless rate of more than 80%, are struggling with electricity shortages, high finance and labour costs and cheap imports, which has seen many firms fail to pay wages or forced to shut.

The latest wave of job losses are leading to renewed anger against President Robert Mugabe's government, which promised 2 million jobs after winning the last elections in 2013.

Japhet Moyo, secretary general of the main Zimbabwe Congress of Trade Unions, said a July 17 Supreme Court ruling had opened a floodgate for dismissals that have seen private firms and state-owned entities laying off thousands of employees.

Instead of the cumbersome and expensive process of paying severance packages, businesses now only have to give workers three months' notice to terminate their employment.

"More than 20 000 workers have lost their jobs due to the Supreme Court ruling and as a union we are worried that if the situation is not urgently addressed more workers will continue to lose their jobs," Moyo told Reuters.

Mugabe's government on Friday published a bill seeking to amend the labour law to force employers to pay severance packages to workers fired after the court ruling and set tougher conditions for future dismissals.

Under the proposed amendments, employers can only dismiss a worker on three months' notice if there is agreement with the employee or if the worker is on a fixed-term contract, otherwise they are obliged to pay retrenchment packages of at least two weeks' salary for every year served.

Parliament, which had been on recess until the end of this month, has been recalled to debate the bill on Tuesday. Mugabe's ruling ZANU-PF party holds a parliamentary majority and wants to fast-track the adoption of the amendments this week.

Busisa Moyo, president of the Confederation of Zimbabwe Industries (CZI), which represents mostly manufacturers, said most businesses could not afford to pay retrenchment packages.

He said some companies, including state-owned enterprises, had accumulated salary arrears of up to a year and were behind on tax and pensions payments.

"So to ask a company that is already struggling to pay salaries to pay a retrenchment package will only force that business to close or go under judicial management," CZI's Moyo said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders