By Own Correspondent

THE Zimbabwe Congress of Trade Unions (ZCTU) has castigated government’s unilaterally employed policies for wreaking havoc in the country’s retail sector in a development which has seen the escalation of company closures.

The calls come on the back of companies such as regional retailer Choppies Enterprise Limited (Choppies) and British multinational professional services and fast-moving consumer goods firms, PricewaterhouseCoopers International Limited and Unilever plc indicating the intention to close down operations in Zimbabwe.

Firms like cement manufacturer Khayah Cement Limited and clothing retailer Truworths Limited entered corporate rescue in December and August 2024, respectively.

In a statement, the Zimbabwe Congress of Trade Unions (ZCTU) acting secretary general, Runesu Dzimiri blamed policies in operation for the demise which is leaving the country’s workers hardest hit.

“The companies that are closing are all citing skewed fiscal and monetary policies that are pushing the retail sector out, including imports of not only cheap but also fake goods that are being sold in the informal sector. While those who are importing these cheap goods are not paying any taxes, formal shops are forced to pay hefty taxes, pushing them to bankruptcy,” he said.

Dzimiri said it is time the government realizes that there is a serious impact on the economy if the retail and wholesale sector is left to collapse.

“First, when jobs are lost, the government will also lose revenue not only on corporate taxes but also in the form of Pay as You Earn (PAYE) and it will obviously fail to meet its operational requirements as well as meeting social services. As PAYE is depleted, the Value Added Tax will also be eroded as workers will not have disposable income,” he said.

Secondly, he said pension schemes both private and public will be affected as every employee whose contract is terminated will look up to the government for social welfare but resources are scarce at the moment.

The labour organ said lack of access to social protection and benefits usually associated with full-time employment leaves employees vulnerable and dependent on the already strained public service provisions.

Thirdly, the ZCTU leader said the general condition of fear and insecurity also dissuades workers from joining trade unions, leaving them even more vulnerable to precarious work arrangements leaving communities in unstable and insecure situations due to disruptions of their life plans.

” The ZCTU demands the government to move fast and address the situation and immediately stop the current wave of company closures. The ZCTU warns the government that the current carnage in the retail and wholesale sector is a recipe for political instability as disgruntled workers will turn against their government for failure to protect them,” Dzimiri added.