Economic disaster: 1170 companies retrench workers

BAKANG TIRO

editors@thepatriot.co.bw

Minister of Labour and Home Affairs, Annah Mokgethi has presented bleak future for the economy by revealing that 1170 companies have notified the Commissioner of Labour of their intentions to lay off employees in the near future.

Employers across different sectors of the economy have been laying off staff, citing cash flow challenges as businesses continue to struggle to recover from the effects of the COVID-19 pandemic and ongoing instability in geo-politics. Answering a question in Parliament on Wednesday posed by Gaborone Central MP Tumisang Healy, Mokgethi said from January 2019 to January 2023 the companies submitted notifications of intention to retrench in terms of Section 25 of the Employment Act to the Commissioner of Labour. She said from January 2019 to January 2023, a total 3680 workers lost their jobs due to retrenchments, and observers say numbers could rise further as rationalization of State-Owned Enterprises will cut jobs.

According to government, rationalisaion of the SOEs is to ensure optimum utilization of state resources, reduce public expenditure; reduce overlaps and duplications; and ensure effective and efficient service delivery through synergies. Rationalisation is expected to be concluded in 2023/24 financial year.