News / National
ZCTU warns of retrenchments
04 Oct 2013 at 04:56hrs | Views
THE Zimbabwe Congress of Trade Unions (ZCTU) has warned of more retrenchments as the country does not have investor-friendly policies.
George Nkiwane, Zimbabwe Congress of Trade Unions president said the decline in capacity utilisation levels is a sad development for companies as it likely to result in more job cuts.
There is need for government, business and labour to come together to formulate policies as there is a lot of policy inconsistencies in the country for example, the indigenisation policy is not clear on whether the assets will be paid for or they will be just taken.
The decline in capacity utilisation levels is a sad development for companies as it is likely to result in more job cuts, Zimbabwe Congress of Trade Union president George Nkiwane has said.
Nkiwane said the 39.6% decline in capacity utilisation recorded by the manufacturing sector this year from 44% in 2012 showed that poverty levels would increase as more people would not have incomes.
"The policies are not investor-friendly and businessmen are looking for money and if a country has policies that are not friendly, investors will just move away," Nkiwane said.
"It is these policies that are leading to company closures.
"If we don't change the policy direction, more companies will close and more people will be retrenched."
Local economist Daniel Ndlela said the financial services sector should play a positive role to enable companies to access funding that would assist them in purchasing raw materials
An estimated 20% of the population is formally employed with the major employer - the manufacturing sector - facing a myriad of challenges that include high utility bills, obsolete equipment and liquidity challenges.
Foreign direct investment (FDI) is estimated at $400 million, which is far below other regional players such as Mozambique, South Africa and Zambia that are above $1 billion annually.
Zimbabwe has failed to attract FDI due to unfriendly policies such as the indigenisation policy.
The policy compels foreign companies to sell 51% of shares to locals.
George Nkiwane, Zimbabwe Congress of Trade Unions president said the decline in capacity utilisation levels is a sad development for companies as it likely to result in more job cuts.
There is need for government, business and labour to come together to formulate policies as there is a lot of policy inconsistencies in the country for example, the indigenisation policy is not clear on whether the assets will be paid for or they will be just taken.
The decline in capacity utilisation levels is a sad development for companies as it is likely to result in more job cuts, Zimbabwe Congress of Trade Union president George Nkiwane has said.
Nkiwane said the 39.6% decline in capacity utilisation recorded by the manufacturing sector this year from 44% in 2012 showed that poverty levels would increase as more people would not have incomes.
"The policies are not investor-friendly and businessmen are looking for money and if a country has policies that are not friendly, investors will just move away," Nkiwane said.
"It is these policies that are leading to company closures.
"If we don't change the policy direction, more companies will close and more people will be retrenched."
Local economist Daniel Ndlela said the financial services sector should play a positive role to enable companies to access funding that would assist them in purchasing raw materials
An estimated 20% of the population is formally employed with the major employer - the manufacturing sector - facing a myriad of challenges that include high utility bills, obsolete equipment and liquidity challenges.
Foreign direct investment (FDI) is estimated at $400 million, which is far below other regional players such as Mozambique, South Africa and Zambia that are above $1 billion annually.
Zimbabwe has failed to attract FDI due to unfriendly policies such as the indigenisation policy.
The policy compels foreign companies to sell 51% of shares to locals.
Source - newsday
