Fossil retrenches 2000 employees

The recent placement of Fossil Group on Sanctions by United States has pushed the firm to  lay off more than 2000 employees.

 United States of America put Fossil on sanctions list amid indications that financial institutions have  advised their intentions.

Yesterday( Monday)  the United States of America added four individuals, Emmerson Jnr, Obey Chimuka, Nqobile Magwizi and and businessman Kudakwashe Tagwirei's wife Sandra Mpunga on the sanctions list.

Two utility companies,  Fossil Agro and Fossil Contracting were also slapped with the economic embargoes.

The statement by US Treasury department did not mention what Obey Chimuka's alleged crime even corruption or human rights violations were not mentioned except him knowing Tagwirei which has become a 'new crime'.

But a day after the drafting of Fossil, the company is set to shade off about 2000 workers, citing viability challenges posed by the
restrictive measures.

The company currently employees 3000 workers.

The company contents that the illegal economic sanctions have a negative impact on its operations and people are set to lose jobs.

"As early as this morning (Tuesday) a meeting was held where it was hinted that more than 2000 employees will lose their jobs," said the insider.

A number of issues, the insider revealed, were discussed in the crisis meeting which resolved laying off some workers as a sanctions busting measure.

The meeting also deliberated on the selective application of the sanctions regime.

"In command agriculture, there were more than 10 firms supplied inputs and Fossil Agro was not the only company government contracted neither was it the largest, FSG which is white owned was the largest company and one wonders why sanctions were imposed on a black owned firm," part of the deliberations, according to the insider.

"This shows Americans have double standards and they are trying all available options to cripple black owned companies through the imposition of illegal economic sanctions."

When Sakunda was drafted on the sanctions list, it laid off 3000 employees as a survival measure.

The US and Zimbabwe have traded blows over sanctions, with Zimbabwe accusing America of using sanctions  for a regime change agenda by forcing impoverishing the population with the  intention of forcing them
to revolt against the government.

America has however insisted that corruption was the cause of the economic meltdown in Zimbabwe.

Fossil Contracting is being involved in major infrastructure projects with Harare-Beitbridge road rehabilitation, Mbudzi interchange construction works with a number of big firms.

The insider disclosed that the meeting also questioned why Fossil was targeted for sanctions.

"In the road construction Fossil Contracting was not even the largest company, Bitumen World is and international company with vast experience in the construction same as Masimba Holdings, but sanctions were imposed on Fossil Contracting with links to Kudakwashe Tagwirei being the crime.

"This shows Americans are against anyone who wants to see the success of the m Second Republic."

Zimbabwe has of the highest unemployment rate in the world, pegged at more than 90%.