Weak economy triggers layoffs

Post was last updated: February 24, 2016

The Employers Consultative Association of Malawi says companies are either laying off staff or suspending their operations in an attempt to survive the harsh economic environment.

Ecam Executive Director, Beyani Munthali, said most of the Association’s members have filed notification letters regarding the position they will take to mitigate the impact of the economic challenges.

“While I cannot disclose the names of the companies, suffice to say that a good number of them have brought up the issue about considering retrenchments or suspending their operations until the economy recovers,” said Munthali.

He, however, said the association has been engaging employers to find other ways of sustaining their operations other than retrenching staff.

“Employment is the backbone of every economy and, as a country, we cannot afford to see our people lose their jobs. This will just worsen the current economic situation. Without creation of employment, the economy stagnates and that is not what we want,” he said.

According to Munthali, government has the responsibility to implement economic recovery programmes quickly to ensure than the economy does not sink completely.

“The government has been promising to revamp the economy soon, but so far nothing is happening. Our plea is that the government should fast-track the recovery process and we will continue engaging the employers on the way forward,” said Munthali.

Just three weeks ago, a renowned manufacturing firm, Mapeto DWS, retrenched 300 of its staff members in an attempt to stay afloat in the face of instability in key macroeconomic indicators.

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