May 13, 2020//-It is worrying that some 30,000 formal workers in Kenya’s manufacturing sector have lost their jobs within the first two months since the first coronavirus case was reported locally.
That translates to about 10,000 job cuts in the second half of March, in April and first half of May. And that is before factoring in the thousands of casual workers who were among the first casualties of the restrictions imposed by the government to slow down the spread of the virus.
But there’s worse news still. Manufacturers, in a report released Tuesday, are warning that as many as 140,000 more formal jobs risk being lost as employers find the going getting harder every day.
The job losses are a clear signal that the recent stimulus package unveiled by the government in the form of reduced income, corporation and value added taxes is taking longer to have the desired effect.
Understandably, manufacturers feel they are caught between a rock and a hard place and reducing their workforce appears to be the best cost-cutting option as they seek to survive the difficult economic circumstances they are going through.
As the managements let go of their staff, they should bear in mind that they are likely losing their best assets, which they will need when the worst is over and companies start finding ways of getting back to profitability.
The companies laying off their talent should consider borrowing a leaf from the West. Instead of declaring job positions redundant and paying workers terminal dues, they are furloughing them.
Basically, they are temporarily laying them off, which means they are not paid, but they retain their benefits such as medical insurance and some allowances.
Best of all, a furlough frees the workers to seek an alternative temporary employment until the economic hardship passes.
In our context, we propose that companies should consider offering basic allowance to sustain their employees during this pandemic.
Such small measures will win the goodwill of the very people they will need after the pandemic is put under control.
