Africa Economy: Zimbabwe massive lay-offs after court ruling sparks concern

At least 8,600 Zimbabwean workers were sent packing in two weeks as employers took advantage of a recent court ruling allowing dismissal of workforce on short notice.

The figure was revealed by the Zimbabwe Federation of Trade Unions, with its secretary-general Kenias Shamuyarira claiming that job losses were actually worse than what was recorded as some of the affected workers had not reported their cases.

In comparison, only about 4,000 workers lost their jobs in the whole of 2014.

"As of yesterday (Wednesday), the number stood at 8,600 and we are talking about those who have managed to report. There could be 3,000 to 4,000 more who are far away from our offices and have not reported. Others do not know where to report, so the correct figure could be as high as 16,000," Shamuyarira told Xinhua on Thursday.

He said employers are "accelerating the firings ahead of amendments to the labor act."

Analysts say that while most of the previous job losses were caused by company closures, recent ones were a result of the July 17 Supreme Court ruling allowing employers to terminate contracts on three months' notice with no further compensation.

The sackings have shaken the government to the extent that President Robert Mugabe has called for an urgent amendment the labor laws to stop companies from firing employees at will.

Opening an exposition on small and medium enterprises on Wednesday, Mugabe said the law entitling employers to dismiss labor at such notice and without compensation was unjust and should be amended urgently to protect the workers.

He said he feared that most of the fired employees would just end up in the streets with no means of survival.

Official figures put the country's unemployment rate at 11 percent but independent experts say it is more than 80 percent.

About 4,600 companies in Zimbabwe closed down between 2011 and October 2014, resulting in 64,000 job losses.

The economic recession, together with the top court decision, has filled workers with fear that they could be shown the door at any time unless the government acts with speed to arrest the surge.

Zimbabwe's labor laws have generally been deemed to be pro-worker, especially in areas of dismissal where guilty employees could escape censure and return to work even in cases warranting firings.

The government is currently working on reforming labor laws mainly to address investors' concerns. Endit