2,457 workers lost their jobs last year

Statistics available at the National Labour Department (NLD) show that a total of 2,457 workers lost their jobs when 45 companies nationwide filed for redundancy in last year, 2011.

A breakdown shows that in January 2011 alone, 771 workers were affected, 432 in November, 372 in September, 200 in July, 173 in August, 176 in May and 110 in April.

Indeed, in 2010, more workers, 3,839 lost their jobs when 75 companies filed for redundancy. In 2009, the NLD recorded 79 companies during which 2,858 workers were affected terms.

Among the reasons mentioned by most of the companies include financial challenges, operational challenges, curtailment of contractual activities, drastic fall in business, labour rationalisation and realignment of job and functions.

Others stated economic situation, restructuring, folding up and reorganisation of operations as their reasons for filing for redundancy.

GRAPHIC BUSINESS sources at the NLD explained that these companies range from construction, financial institutions, airline operators, agro-processing to telecommunication providers.

The Labour Act requires that applicants apply to declare redundancy four months prior to the contemplated exercise. The source explained that upon receipt of such applications labour inspectors are sent out to investigate whether the exercise is a genuine one. In essence, the department has to be convinced.

Packages for such redundancy exercise are often in accordance with the Collective Bargaining Agreement (CBA) that exist and bind unions and employers. 

The sources at the NLD described as unfortunate the situation where local producers cannot sell their products cheaply because of high production cost but had to compete with cheap imports, particularly from China.

They are, therefore, left with no choice than to reduce their labour force or close down totally.

The source added that with such constraints to investment and the growth of local industries, the saying that the private sector is the engine of growth may not materialise if these complaints by the business community are not resolved.