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Labour Ministry to Regulate Company Retrenchments

FILE: Zimbabwean workers demonstrate against the high cost of living and low wages in Harare, Saturday, April, 11, 2015. Hundreds of workers took to the streets of Harare in an effort to stop the Zimbabwean government from passing laws that will make it easy for it to dismiss workers as the country battles with a high unemployment rate.( AP Photo/Tsvangirayi Mukwazhi)

Employers have castigated Zimbabwe’s move to come up with new regulations for blocking company retrenchments, which include demands for industries to first submit salary scales of executives and all employees before sending workers home.

Other demands announced by Labour Minister Priscah Mupfumira are that the companies should also submit a list of measures undertaken before any decision is made to retrench workers.

Thousands of companies have been retrenching workers in Zimbabwe due to the country’s economic decline largely attributed to lack of foreign direct investment, lack of capital and related issues.

For perspective, VOA reporter Tatenda Gumbo turned to Kennias Shamuyarira, secretary general of the Zimbabwe Federation of Trade Unions, and economist and former Confederation of Zimbabwe Industries president, Calisto Jokonya.

Jokonya said it is noble for companies to begin to follow what has long been outlined in the Labour Act.

On the other hand, Shamuyarira said as workers the regulations are important in ensuring that companies stick to the law and Constitution.

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