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In a statement, the Retrenchment Board said low capacity utilisation, low product demand, obsolete machinery susceptible to frequent breakdowns, lack of working capital and raw materials were some of the factors triggering retrenchments.
It said the commercial sector contributed the highest number of retrenchees.
“These figures are based on reported cases,” it said.
The Retrenchment Board said a number of factors, which included managerial strategies to reduce operational costs, triggered the latest cases.
“The latest figures can be attributed to centralisation of manufacturing processes, failure to recapitalise and competition from imports,” it said.
Commenting on the issue, Zimbabwe Congress of Trade Unions secretary-general Mr Japhet Moyo said high statistics of laid off workers were not healthy for a country already grappling with unemployment.
“Workers were expecting that the birth of the inclusive Government would bring economic stability and growth which has however not been the case.
“Many companies are closing shop, scaling down operations or relocating to neighbouring countries,” he said.
“This is why the number of laid off workers is increasing. Some companies are moving to Botswana, Lesotho and even Mozambique. It is worrying to us as we were hoping for a brighter future for workers.”
Mr Moyo said there was need for local industries to access cheap credit lines to revamp operations.
“Those relocating to other countries are going there because they can easily access money for recapitalisation, be it in Zambia or Botswana,” he said.
“This is the solution to our problem. An environment where industrialists can access capital is the answer to save more workers from losing their jobs.”
He said the liquidity crunch was likely to continue until the country goes back to the fundamentals.
Local companies should also seriously consider joint ventures with foreign firms for recapitalisation, he said. — New Ziana.
Online Reporter