‘LABOUR LAWS FORCING MASS REDUNDANCIES’
Labour laws compelling employers to give employees gratuity, housing and transport allowances may sound good for workers but they have very bad implications. This is where we see many jobs being lost and some companies collapsing. Especially now that the economy is not doing well, businesses are struggling.
NEWLY introduced labour laws compelling employers to pay workers 25 percent gratuity, housing and transport allowances will lead to mass job losses with the economy being in recession, Forum for Democracy and Development (FDD) spokesperson Yotam Mtayachalo has warned.
Mr Mtayachalo said in as much as the labour reforms were good for employees, the timing was wrong.
He said in an interview that with the current economic challenges such as load-shedding, fuel and electricity tariff increases were affecting businesses badly.
Mr Mtayachalo said most companies were struggling to remain in business and profitable.
He said it was unrealistic to compel employers to pay workers gratuity, housing allowance and transport allowance among others when they were in a financial crunch.
Mr Mtayachalo, who is former general secretary of the National Energy Sector and Allied Workers Union warned that such pressure on employers would result in mass job losses.
He said subjecting struggling companies to ballooned financial obligations was tantamount to setting them on a path to collapsing.
Mr Mtayachalo demanded that the Ministry of Labour and Social Security rescinds its decision in order to save jobs.
“Labour laws compelling employers to give employees gratuity, housing and transport allowances may sound good for workers but they have very bad implications. This is where we see many jobs being lost and some companies collapsing. Especially now that the economy is not doing well, businesses are struggling,” he said.
Mr Mtayachalo challenged Zambians to find out how many jobs have been lost since the minimum wage was increased.
He said thousands of jobs have been lost as a result of the decision to increase the minimum wage.
And Mr Mtayachalo advised minister of Labour and Social Security, Joyce Simukoko to start thinking like a labour leader and not a union leader.
He said Ms Simukoko had been in the unions for a very long time and that it was not surprising why she put the plight of employees at high esteem.
Mr Mtayachalo however said her current position demanded that she looks out for what was best for both employers and employees.