The Sunday News
Brian Chitemba, Harare Bureau
Workers in various sectors of the economy, particularly the hospitality and tourism industry, are bearing the brunt of the novel Coronavirus, and there are growing fears of job losses if the global economy continues worsening.
The local tourism industry employs more than 40 000 workers. Most companies are considering cost-cutting measures in order to stay afloat as revenues decline. The country’s five-week national lockdown is set to end on May 3. Employers Confederation of Zimbabwe (EMCOZ) president Mr Israel Murefu said the tourism, hospitality and airlines industries were the most affected by the pandemic.
“Some companies may not be able to come back to life when the current extended lockdown is over. This is because many, especially the so-called non-essential businesses, have lost production, markets or consumers, as well as suppliers. The companies have employees sitting at home but have valid contracts of employment and therefore expect to be remunerated even though they have not been rendering any services,” said Mr Murefu.
He warned that many companies would not be able to sustain salaries beyond this month.
“This is what the companies have actually said and it is on record. I am not sure how one could preserve jobs if they cannot remunerate those jobs,” he said.
Hospitality Association of Zimbabwe (HAZ) vice president Mr Farai Chimba told our Harare Bureau yesterday that the tourism sector was bleeding as hotels, restaurants and bars remained closed. The sector’s 40 154 workers, most of whom are female employees, are presently working from home. It is believed that women make up 61 percent of the tourism and hospitality sector, accommodation and food services.
Overall, the tourism industry contributes 1,4 percent to national employment, according to HAZ. Mr Chimba, however, said various companies were implementing measures to reduce the impact of Covid-19.
“As this is a very diverse sector, there is no one solution that fits all. Re-evaluation of costs, reducing the seasonal staff complement, sending staff on leave, salary and wage cuts are some of the cocktail of measures that have been implemented in various businesses based on their business model positions,” he said.
Mr Murefu also weighed in: “Our advice is that labour should be managed in terms of the Labour Act and workplace or (National Employment Council) NEC consultations are the way to go if an employer wants to do something that may adversely affect labour. While everyone is encouraged and is being called upon to protect employment, if one is unable to open or can only open at very low capacity owing to financial constraints, they may not be able to carry as many jobs as they were before the crisis. This is where joint workplace or industry consultations on the way forward are needed in terms of the law.”
Mr Murefu said EMCOZ was pushing for a Distressed Relief Fund to be established to assist companies come back to life. He also suggested measures including tax relief, revisiting the two percent tax, National Social Security Authority (NSSA) contributions holiday, reviewing Value Added Tax (VAT) levels, subsidies as well as lowering electricity tariffs. Other recommendations are softer bank loans and easier access to working capital for small to medium enterprises and big businesses.
However, Public Service, Labour and Social Welfare Minister Professor Paul Mavima recently issued a statement urging companies to avoid retrenchments, unpaid leave and unfair terminations during the lockdown period.
Furthermore, Government has come up with a $600 million package to support the informal sector and vulnerable households. The International Labour Organisation (ILO) estimates that globally over 25 million jobs will be lost due to the coronavirus.
