Outrage over Govt retrenchment plans

11 Jan, 2015 - 00:01 0 Views

The Sunday News

Mesabe Ncube Business Reporter
REPORTS about the impending retrenchment exercise in the civil service as Government aims to tackle labour costs have raised panic within the country’s trade unions that feel this may set a wrong precedent in the private sector as well.According to the trade unions, claims that retrenchment was the route to go created a false background against which employers may justify undue actions of retrenchment, an action which the Labour Act views as an extreme and last resort measure which should be taken only when everything that can be done in the best interest of employees has failed.

Zimbabwe Congress of Trade Unions (ZCTU) president, Mr George Nkiwane, said retrenchment was not a solution to employment costs and other challenges the country was faced with but an indicator of failed policies.

“As unions, we view retrenchment not backed by safety nets to manage the transitional period as an attack and decimation of the working class,” he said.

Mr Nkiwane said Government needed to deal with factors and variables that would bring about the desired results like investment, both locally and externally as well as employment creation for the improvement of the people’s standards of living as opposed to aggravating them through retrenchment.

He said Government should also consider turning some ministries into departments or integrating them into other ministries in order to reduce its payroll.

“It is my contention that once that is done, the wage bill may be manageable and talks of retrenchment in the civil service may be a thing of the past,” he said.

In a separate interview Zimbabwe Amalgamated Railway Workers’ Union (ZARWU) president Mr Kamurai Moyo said if Government, as a major employer and provider of secure employment, effected retrenchment it would open the flood gates for the private sector to do the same.

Mr Moyo said their greatest fear was that the country could end up with no employees in the formal sector as retrenchments and company closures intensified.

“Government should realise that the reduction of labour costs through retrenchments comes with a reduction of productivity,” said Mr Moyo.

Mr Moyo also shared the same sentiments with the ZCTU president that the size of ministries should be trimmed and suggested that Government venture into profit making projects in the farming and mining sectors to have a clear source of income while creating more employment.

“The idea of resettlement was good for individuals but Government should have spared some land for its own projects that would generate income for the country,” he said.

 

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