OVER 8 000 LAID OFF, NO PAY FOR 2 MONTHS

MBABANE – Shocking statistics have been released by the Ministry of Labour and Social Security relating to the number of unpaid layoffs due to the COVID-19 pandemic.

The total number of people who will not be getting paid in two months is a staggering 8 429. The figures were revealed by the Minister, Makhosi Vilakati, during a press conference held at the Cabinet Offices yesterday afternoon.

The hardest hit industry, according to Vilakati was the textile and apparel sector, where six companies applied for layoffs which were approved.

As a result, 8 121 people were laid off.
The second hardest industry was the hotel and catering sector where a total 221 people were laid off.
The minister revealed that a total of 43 applications for layoffs were received as they invoked Section 5 (a) of the guidelines by filing applications for temporary layoffs of their employees.

He said this occurred during the period from April 9, 2020 to date.
He said from these 17 were from the Hhohho Region, 22 from the Manzini Region,  one from the Lubombo Region and three from the Shiselweni Region.

Of the 43 companies, the minister said 13 had since had their applications approved after due processes resulting in a total of 8 429 employees being affected by the unpaid lay-offs.

On a similar note, the minister revealed that 16 companies had so far invoked Section 4 (b) of the guidelines on applying for the release of the bond or security on payment of wages.

He said these applications were from April 15, 2020 to date and stated that it was worth noting that these were promptly processed by the ministry without any pre-requisites.

Companies

He said of these 12 companies were from the Hhohho Region and only four   from the Manzini Region.
Vilakati further submitted that on the suspension of Eswatini National Provident Fund (ENPF) contributions for April and May 2020, 36 companies  had so far invoked Section 4 (d) of the guidelines on giving notice to divert the April and May, 2020 ENPF contributions towards cushioning the salaries of employees. 

He said this occurred during the period from April 16, 2020 to date.
“Of these, 19 are from the Hhohho Region; 16 are from the Manzini Region; with only one from the Shiselweni Region,” he said. Vilakati said the declaration of a national emergency as a result of the outbreak of the novel coronavirus culminated into a need to issue

The guidelines on Employment Contingency Measures in Response to the Coronavirus (COVID-19) Pandemic, General Notice No. 22 of 2020, which guidelines were issued in terms of Section 32(10) of The Coronavirus (COVID-19) Regulations, Legal Notice No. 72 of 2020. He said these guidelines were issued in order to assist employers and employees address any uncertainties in respect of payment of salaries, employment status of workers, workplace governance and other pertinent issues which were considered necessary to regulate during this period. He said among other objectives, the guidelines promoted workplace related social dialogue (consultations) between employers and workers in respect of all employment contingency measures that are deemed appropriate during the period of partial lockdown or national emergency.

Salaries

“We sympathise with social partners since we fully understand how challenging it is for them to manage industrial relations issues these days, more especially in relation to the payment of salaries and wages,” he said.

He said notwithstanding, they implored all employers to ensure full compliance with the Guidelines on Employment Contingency Measures when implementing their interim employment measures as might be deemed appropriate for their businesses during this difficult period.

He said the guidelines had been drafted in such a way that they were equally sensitive to the economic challenges which businesses out there were faced with during this time, in as much as they encourage the continued payment of salaries for workers.
“To this extent, provision has been made in the guidelines that where it becomes economically impossible to continue paying salaries for employees, certain measures should be taken by employers in an effort to mitigate against the effects of loss of earnings,” he said.

Vilakati said the continued payment of salaries was not based upon the principle of ‘no work no pay’, but it was conditional upon financial considerations of the business.
“The ‘no work no pay’ principle only applies during strike actions, now the employees are not on strike but certain businesses are closed in compliance with the partial lockdown,” he said.

He reiterated that any contingency measure that was considered possible depending on the financial circumstances of a business, including the one on pay cuts or reduction of payment of salaries, should be taken in full consultation with the employees and the office of the Commissioner of Labour, and should not be imposed upon the employees.

“If all the options that are meant to mitigate against the effects of loss of earnings as listed in Section 4 of the guidelines have been exhausted, employers are allowed to then apply for unpaid layoffs of their employees in terms of Section 5(a) of the guidelines,” said Vilakati.

He said such layoff applications were directed to the office of the Commissioner of Labour and should be submitted through email provided hereunder not physical visits to the ministry.  

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