adminEmcoz executive director Mr John Mufukare said the organisation was concerned by the increase in retrenchments since the adoption of the multi-currency system as wages continued to override production levels.
He said the prevailing economic environment exerted “severe stress” on the employer-employee relationship.
“Sometimes, when all other avenues have been explored, there is no alternative to rightsizing for business sustainability and survival.
“The prevailing economic environment is putting severe stress on the employer- employee relationship. Retrenchment has been on the increase since the adoption of the multi-currency regime, as wages continue to soar above productivity,” he said.
Mr Mufukare would not be drawn into revealing the number of retrenchments recorded in the country in the first six months of the year as he did not have the statistics off hand.
Last year, the Retrenchment Board reported that the number of laid off workers in the country went up to 3 605 from 1 605 in 2010.
Low capacity utilisation, low product demand, obsolete equipment susceptible to frequent breakdowns, lack of working capital and raw materials are some of the factors perpetuating retrenchments.
“Emcoz representatives on the retrenchment board have noted less than perfect preparation on the part of employers appearing before it making the case for realistic retrenchment packages difficult to sustain and defend. This is a management development gap requiring urgent attention.
“Emcoz will therefore convene a training workshop to address the shortcomings identified, on 26 July 2012 at Zimbabwe Lodges, targeting executives responsible for determining right sizing policies at their companies and those who must execute those policies,” Mr Mufukare said.
He said the aim of the training event was to expose employers to the ethical and legal requirements in the retrenchment process.
It is hoped that at the end of the workshop participants would have received an overview of the country’s economy, information on current retrenchment trends as well as developed an action plan policy position for retrenchment.
The Confederation of Zimbabwe Industries (CZI) has attributed low capacity utilisation to operational constraints companies were facing despite the liberalisation of the economy three years ago.
The industry representative body in its manufacturing survey report released at the end of last year said capacity utilisation in industry was at 57,2 percent.
Online Reporter