• Thursday, October 02, 2014

Editorial

Companies forced to downsize

Political strife hurting economy

IT was bound to happen sooner or later. When productive activities go into limbo, the first cut in costs comes from a reduced workforce. The beginning of these “cuts” are now manifesting themselves all across the private sector, and the trend will most certainly intensify should the political climate remain as it is. Contrary to popular opinion, the cutback will affect not only “blue collar” jobs but “white collar” ones too. Strikes and blockades have effectively curtailed both exports and imports and sapped the energy out of companies involved in the supply chain across various sectors.
As redundancies begin to take hold in the employment sector, unemployment is set to rise. Things do not get much more damaging than that for any economy. The pains associated with unemployment, at whatever level of the workforce need no explanation. For the management of a company or industry, having to let go of people is a difficult choice. These measures are being initiated in an effort to reduce the financial burden of forced non-productivity. With 75 days of strikes and blockades over the last three months, the economy is facing the full brunt of the political stalemate. This paper has reiterated over and over again, on the dire need for political dialogue between the government and major opposition parties. Without dialogue there can be no settlement and the consequences of such an impasse have just begun to be felt.

Published: 12:00 am Wednesday, January 08, 2014

Last modified: 10:01 pm Wednesday, January 08, 2014

TAGS: Political strife hurting economy

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