THE Association of Labour Practitioners in Zimbabwe (ALPZ) said this week several firms that have slipped into corporate rescue have violated fair employment practices.
Since beginning of this year, Zimbabwe has been rattled by a wave of business that have sought corporate rescue, as the economic crisis deepens.
Businesses have been affected by rising costs, a volatile currency, declining utility service delivery, dilapidated infrastructure and foreign currency shortages. Companies that have entered corporate rescue include Beta Bricks, Khayah Cement, Truworths, and supermarket chain Food World.
In an interview with businessdigest, ALPZ chairperson Caleb Mucheche said companies must prioritise fair labour practices.
“In light of increasing number of company closures and the trend of businesses entering corporate rescue, it is imperative that companies prioritise fair employment practices,” Mucheche said.
“As organisations navigate these turbulent times, adhering to fair labour standards not only safeguards employees’ rights but also fosters a culture of trust and stability. By doing so, businesses can emerge stronger and more resilient.”
Company closures have resulted in more job losses in a market battling 90% unemployment.
“The recent wave of company closures has left many workers grappling with job losses and insecurity. This alarming trend threatens livelihoods (and) creates an atmosphere of uncertainty, where employees are fearful for their future,” Mucheche added.
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“While some businesses are facing genuine financial distress due to depressed productivity and unsustainable operational costs, others are succumbing to the effects of gross mismanagement. This mismanagement often leads to asset stripping and induced closures, compounding the crisis for employees who deserve better.”
In response to the growing crisis, Mucheche affirmed ALPZ’s commitment to ensuring that all terminations of employment were conducted in a procedurally and substantively fair manner.
“We are dedicated to ensuring that both employers and employees adhere to the due process of law. We firmly believe in the importance of complying with labour laws, which mandate fair terminations and appropriate compensation for job loss,” he added.
Recognising the critical role of government in this landscape, Mucheche urged policymakers to create a conducive environment for business growth.
“There is a need for the government to create a supportive environment for the establishment of new businesses and the rejuvenation of existing ones through measures such as limiting or reducing excessive taxation,” he said.
