Job losses are silently rising
Widely under-reported, retrenchments are occurring far and wide across all industries in the country as the economic pinch tightens.
The Namibia Employers Federation (NEF) predicts that more Namibians will become unemployed in the next few months.
This is despite the president's claims that the economy is looking up and gradually moving out of recession.
According to NEF secretary-general Tim Parkhouse, his office has been inundated with calls from employers seeking guidance on how to lay off workers.
He noted that while some companies are opting to reduce working hours and salaries, many see no future and simply decide to close shop.
The Labour Act provides for the reduction of salaries and working hours during economic hardship.
“Last week, and the week before, five companies contacted me on how to go about retrenchments. And that is only the companies that have contacted me. I know some of our members who are in the consulting business have been consulting companies on how to reduce staff members,” Parkhouse said.
According to Parkhouse, other cost-cutting measures include an extension of operating hours without increasing salaries, while some companies simply do not replace staff who resign.
He noted that one of companies that extended working hours without increasing pay also indicated that it would not pay bonuses this year. “The downturn is affecting all sorts of people. The construction industry was the one that felt the first blow. It is a worrying situation. I get these calls quite frequently and I am afraid that we will possibly see more defaults on loans,” he said.
Parkhouse also predicts that the country's unemployment rate, which currently stands at 34%, has gone up significantly.
Economics professor Dr Omu Kakujaha-Matundu agreed with Parkhouse, saying that it would take a number of years to get out of the current economic slump.
“Look at the state-owned enterprises that are planning to lay off their workers. If they do it then we will definitely see an increase in the unemployment rate,” said Kakujaha-Matundu.
According to him, more retrenchments are highly likely.
“When you look at the public sector as one of the main sectors in the economy which in the face of the current fiscal consolidation cannot afford to spend any more, most companies will not be able to benefit from government tenders anymore,” he said.
The labour ministry is preparing employment statistics for the last three months but could not provide any further information at this time.
JEMIMA BEUKES
This is despite the president's claims that the economy is looking up and gradually moving out of recession.
According to NEF secretary-general Tim Parkhouse, his office has been inundated with calls from employers seeking guidance on how to lay off workers.
He noted that while some companies are opting to reduce working hours and salaries, many see no future and simply decide to close shop.
The Labour Act provides for the reduction of salaries and working hours during economic hardship.
“Last week, and the week before, five companies contacted me on how to go about retrenchments. And that is only the companies that have contacted me. I know some of our members who are in the consulting business have been consulting companies on how to reduce staff members,” Parkhouse said.
According to Parkhouse, other cost-cutting measures include an extension of operating hours without increasing salaries, while some companies simply do not replace staff who resign.
He noted that one of companies that extended working hours without increasing pay also indicated that it would not pay bonuses this year. “The downturn is affecting all sorts of people. The construction industry was the one that felt the first blow. It is a worrying situation. I get these calls quite frequently and I am afraid that we will possibly see more defaults on loans,” he said.
Parkhouse also predicts that the country's unemployment rate, which currently stands at 34%, has gone up significantly.
Economics professor Dr Omu Kakujaha-Matundu agreed with Parkhouse, saying that it would take a number of years to get out of the current economic slump.
“Look at the state-owned enterprises that are planning to lay off their workers. If they do it then we will definitely see an increase in the unemployment rate,” said Kakujaha-Matundu.
According to him, more retrenchments are highly likely.
“When you look at the public sector as one of the main sectors in the economy which in the face of the current fiscal consolidation cannot afford to spend any more, most companies will not be able to benefit from government tenders anymore,” he said.
The labour ministry is preparing employment statistics for the last three months but could not provide any further information at this time.
JEMIMA BEUKES
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