24 Feb 2021

Minister of Employment, Labour Productivity and Skills Development, Mr Mpho Balopi says he is cognisant of the fact that some companies in the private and parastatal sectors retrenched their employees after ceasing operations due to financial constraints.

He said he was, however, not aware of prejudicial dismissals in the public service.

“In any case, Section 6(1) of the Trade Disputes Act provides for referral of trade disputes to commissioner of labour for mediation. Section 7(3) of the act also provides for referral disputes to the Industrial Court for adjudication,” he said.

He said employees aggrieved by an employer’s decision to terminate their contract of employment were at liberty to take up their disputes through the dispute resolution process provided in the act for settlement.  

Mr Balopi said from April 2020 to January 2021, his ministry received 377 notifications of intention to retrench as required by Section 25 of the Employment Act.

From the notifications, he said 966 employees were affected from 27 companies, adding that the most affected industries/trades were manufacturing, service and repair trades.

“I wish to indicate that Clause 30E of Supplement C-Emergency Powers (COVID-19) (Amendment) (No. 2) Regulations, 2020- SI. No. 63 of 2020 prohibits retrenchment and dismissal of employees on the basis of COVID-19 during the state of public emergency,” he said.

However, the minister noted that regulations did not suspend labour laws, saying that since the outbreak of the COVID-19 pandemic, the tripartite parties had engaged regularly to guide the world of work.

He said the engagement culminated in the development of guidelines to protect or safeguard employment.

“On the basis of the aforesaid regulations and tripartite guidelines, my ministry continues to engage companies that submit intentions to retrench with a view to finding ways to avoid job losses,’ he said.

Mr Balopi said the companies were assisted to assess their hours of work in order to reduce overtime expenditure and allowances payable. He also said they were assisted to use of technology, consider shift work and other work arrangements.

The minister said there were lessons that the world of work learnt from COVID-19. 

He said the pandemic had revealed that there was an urgent need to strength social dialogue and social protection in order to cushion employees against loss of income.

He said the lessons were coming at a time when they were implementing the Botswana Decent Work Country Programme (BDWCP) 2020–2024.

“The BDWCP pillar on social protection and conditions of work is relevant to address the Honourable Member’s concerns. 

The implementation of this pillar, which includes provision of unemployment benefits, will be undertaken as part of the development of the social protection framework which is spearheaded by the Ministry of Local Government and Rural Development,” he said

Furthermore, he said mediators and arbitrators were empowered by the Trade Disputes Act to deal with trade disputes, including disputes pertaining to retrenchments.

“I would like to inform this House that arbitrators have the power to make determinations or awards that are final and binding. With regard to mediators, members will recall that prior to the establishment of the Industrial Court in 1994, labour officers had powers to make binding decisions on all trade disputes reported to them,” he said.

The minister said the power was transferred to the Industrial Court when it was established, adding that the decision was taken by the tripartite parties and that it was in line with international standards and best practice. 

Notwithstanding the foregoing, it was anticipated that the ongoing labour law review would give more clarity on issues of retrenchments, said Mr Balopi.   

Palapye MP, Mr Onneetse Ramogapi had asked the minister if he was aware of the massive retrenchments, particularly in the private sector, parastatals and some prejudicial dismissals in the public service.

He also wanted him to state the number of companies that had engaged in retrenchments and the number of employees affected;

MP Ramogapi also asked whether it was not time to introduce the unemployment insurance fund/ scheme as the retrenchments added to the rising level of unemployment;

 

The Palapye MP also wanted to know when the ministry intended to strengthen dispute resolution to give more power to mediators and arbitrators to deal with cases where retrenchments were unprocedural and unlawful. ENDSPARLIAMENT - Minister of Employment, Labour Productivity and Skills Development, Mr Mpho Balopi says he is cognisant of the fact that some companies in the private and parastatal sectors retrenched their employees after ceasing operations due to financial constraints.

He said he was, however, not aware of prejudicial dismissals in the public service.

“In any case, Section 6(1) of the Trade Disputes Act provides for referral of trade disputes to commissioner of labour for mediation. Section 7(3) of the act also provides for referral disputes to the Industrial Court for adjudication,” he said.

He said employees aggrieved by an employer’s decision to terminate their contract of employment were at liberty to take up their disputes through the dispute resolution process provided in the act for settlement.  

Mr Balopi said from April 2020 to January 2021, his ministry received 377 notifications of intention to retrench as required by Section 25 of the Employment Act.

From the notifications, he said 966 employees were affected from 27 companies, adding that the most affected industries/trades were manufacturing, service and repair trades.

“I wish to indicate that Clause 30E of Supplement C-Emergency Powers (COVID-19) (Amendment) (No. 2) Regulations, 2020- SI. No. 63 of 2020 prohibits retrenchment and dismissal of employees on the basis of COVID-19 during the state of public emergency,” he said.

However, the minister noted that regulations did not suspend labour laws, saying that since the outbreak of the COVID-19 pandemic, the tripartite parties had engaged regularly to guide the world of work.

He said the engagement culminated in the development of guidelines to protect or safeguard employment.

“On the basis of the aforesaid regulations and tripartite guidelines, my ministry continues to engage companies that submit intentions to retrench with a view to finding ways to avoid job losses,’ he said.

Mr Balopi said the companies were assisted to assess their hours of work in order to reduce overtime expenditure and allowances payable. He also said they were assisted to use of technology, consider shift work and other work arrangements.

The minister said there were lessons that the world of work learnt from COVID-19. 

He said the pandemic had revealed that there was an urgent need to strength social dialogue and social protection in order to cushion employees against loss of income.

He said the lessons were coming at a time when they were implementing the Botswana Decent Work Country Programme (BDWCP) 2020–2024.

“The BDWCP pillar on social protection and conditions of work is relevant to address the Honourable Member’s concerns. 

The implementation of this pillar, which includes provision of unemployment benefits, will be undertaken as part of the development of the social protection framework which is spearheaded by the Ministry of Local Government and Rural Development,” he said

Furthermore, he said mediators and arbitrators were empowered by the Trade Disputes Act to deal with trade disputes, including disputes pertaining to retrenchments.

“I would like to inform this House that arbitrators have the power to make determinations or awards that are final and binding. With regard to mediators, members will recall that prior to the establishment of the Industrial Court in 1994, labour officers had powers to make binding decisions on all trade disputes reported to them,” he said.

The minister said the power was transferred to the Industrial Court when it was established, adding that the decision was taken by the tripartite parties and that it was in line with international standards and best practice. 

Notwithstanding the foregoing, it was anticipated that the ongoing labour law review would give more clarity on issues of retrenchments, said Mr Balopi.   

Palapye MP, Mr Onneetse Ramogapi had asked the minister if he was aware of the massive retrenchments, particularly in the private sector, parastatals and some prejudicial dismissals in the public service.

He also wanted him to state the number of companies that had engaged in retrenchments and the number of employees affected;

MP Ramogapi also asked whether it was not time to introduce the unemployment insurance fund/ scheme as the retrenchments added to the rising level of unemployment;

The Palapye MP also wanted to know when the ministry intended to strengthen dispute resolution to give more power to mediators and arbitrators to deal with cases where retrenchments were unprocedural and unlawful. BOPA