Thursday, March 28, 2024

Companies experiencing operational difficulties should not lay-off of workers-Shamenda

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Minister of Labour Fackson Shamenda
Minister of Labour Fackson Shamenda

GOVERNMENT will not condone the laying-off of workers by companies experiencing operational difficulties, Labour Minister Fackson Shamenda has warned.

Mr Shamenda said companies operating in Zambia should not rush to retrench workers but find alternative means of addressing teething problems.

Mr Shamenda said in an interview in Lusaka yesterday that Government was concerned with recent developments, where some companies were opting to reduce the workforce as a solution to addressing various operational challenges.

Mr Shamenda was commenting following reports that Nokia Siemens Networks under Airtel, was planning to reduce its labour, without forwarding communication to the Ministry of Labour over such intentions.

“Government is trying to create employment for its people and we will not condone any company that opts to retrench workers, whenever they are experiencing problems. In this case it will not be correct for Nokia Networks to start considering reducing its labour.

“I have said it before and I will repeat, my doors are open, we can sit together and discuss any problems that they are facing, so that we avoid retrenchments. Companies should stop entertaining the idea of labour-cuts. We are not going to accept unnecessary job losses, we should be talking about job creation,” he said.

Concerned Nokia Siemens employees revealed that, management had decided laying-off workers after its decision to relocate operations to India.

The affected workers appealed to Government to intervene in the matter.

“We write to the Government on the pending retrenchments at Nokia Siemens Networks (Airtel). We wish to express our displeasure and concern on happenings at Nokia Siemens and earnestly appeal to the Government to intervene and stop pending retrenchments,” read the letter of complaint.

The workers speaking on condition of anonymity said once the relocation of operations to India was fulfilled, local jobs would be replaced in that country.

The workers said the decision to set up a hub in India was unjustified as this could be done in Zambia and that the hub could be set up in Africa to handle all Airtel operations around the continent.

“It should also be noted that Airtel has outsourced many of its functions to not less than five sub-companies which has resulted in some cases casualisation, diminishing of conditions of service and reduced quality of employment. The trend has to be monitored and checked since a Zambian worker is at the mercy of these companies,” the workers said.

18 COMMENTS

  1. This is strange, how do companies maintain a big workforce in the event of making loses? Does the minister prefer the companies wind-down? There is no business sense in what he is talking about, labour hire is dependent on productivity and profitability in a market driven economy. Bwana minister think again, otherwise you are pushing private companies out of business.

    • He doesn’t understand what a profit and production driven economy mean. All they want is cheap political points .The fact remains that they have given permanent jobs to Dick (without qualifications) and sibongile (sex worker).And now Zambians are left with such jobs like this one.

  2. mr shamenda… hahahah… i like your school boy thinking.. companies who are experiencing operational problems should not lay off workers when operational cost are high??,,, so that they make losses and become bankrupt….good point backwardly!!!!

  3. Mr Minister how will having a discussion in your office resolve bottom line issues. If you really have workers plight at heart, go to parliament and make a law that assists companies in financial difficulties maintain labour force. Other countries have bankruptcy laws that assist prevent companies from going under by giving them grace period on statutory obligations. In the absence of protection legislation what would companies be discusing at labour office?

  4. The issue of Nokia Siemens is purely different, this company is helping Airtel relocate it’s NOC to India so that these Jobs are done in India and not Zambia meaning Zambian workers loose out. This branch of Nokia Siemens Networks is somewhat strange as it is dominated by Indian Staff and every Indian want to feel senior to every black person even if better qualified and experienced. Zambian workers built Airtel from ZAmcel to Celtel to Zain thats why indians got it for about US$11billion as African ops except sudan. During those times the company was driven by well motivated Zambian workers including Doc Mupanga Mwanakatwe. The company was very profitable and got a lot of awards (On the Continent and outside) as a zambian operation beating all Ops in Africa several times.

  5. I wonder how these Ministers manage to think the way they do. Because its impossible for me to think later on speak like this Shamenda!

  6. Doesn’t the “honourable” Minister understand that preventing companies from firing workers will only slow job creation? Businesses will now be reluctant to take on new workers for fear of being stuck with them forever if and when (!) conditions change.

  7. Ctnd
    Lets not rubbish our people but mindful of the investors with hidden Agenda. The company Airtel now offers very poor services because Indians feel Friendship and religion is above business, so they don’t bother since they look at NSN as brothers and Friends( They also lack truths as a pipo) . Govt should threaten to revoke the licence if they dont improve their service delivery.
    Thank you

  8. Shamende and Musekeni seem to compete in dullness,so called ministers ,there is no shred of sense of what you are saying.You have no control over companies,remember companies do not use tax payers money like your cabinet which is bloated with no noticeable output or rather achievements.On the other hand it’s time you Poor Finishers (PF) government started respecting home grown businessmen and women like HH than intimidating them as you are doing to Zambeef.It’s time you misguided monkeys went on a retreat and did some introspect of your failed governance.Ba Shamende you are used to just demanding start a small business also lets see how you will manage it!!!!!!!!

    • You are right , these airheads baffle me. How in the world does he expect a company that did not consult BOMA when employing , should do so when they want to right ( not downsize) size.

      He should take up your challenge about setting up a small business and paying his employees the minimum wage!

  9. Has this minister ever run a business?the goal of every investor is to make profits.why is it that many business houses wants to lay off workers?in my opinion the business environment is very uncertain.that means the PF policies are not business friendly.govt does not create jobs but create good policies that will Attract investors .the revenue base is very small for gov’t to have many workers.
    My daughter is 5 ,but most of the time she asks what’s the benefit?

  10. Hon Minister, what companies are facing are not ‘teething problems’ but ‘gumming problems’. the companies are too old so are unproductive and inefficient, they have to shed off teeth to remain with gums.

  11. let more companies cum on board to allow other pipo who re been lead off to work again,create more companies not wa is being talked about keepin workers in employment gettin low salaries.

  12. No wonder we are in trouble as a nation with this caliber of leadership. This is simple math!

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