KEY POINTS
- CWUZ urges NSSA to process early payouts for unemployed workers.
- Zimbabwe’s unemployment rate is rising, pushing many into informal jobs.
- Financial instability could lead to economic and health challenges.
Citing widespread unemployment and financial hardship, a local workers’ rights group has petitioned the National Social Security Authority (NSSA) to process early pension payments for workers who have lost their jobs.
Union calls for early pension payouts
The International Labour Organization (ILO) reports that formal employment is steadily falling and that Zimbabwe’s unemployment rate is approximately 20%. Many workers have been forced into the unorganized sector over time, where job security is unpredictable and pay are low.
Formal work prospects are still declining despite government efforts to solve the situation, which has resulted in the closure of multiple businesses and the unemployment of thousands of people.
Cuthbert Chikwekwete, general secretary of the Commercial Workers Union of Zimbabwe (CWUZ), urged NSSA to modify its regulations to take into account the evolving labor market.
According to New Zimbabwe, it is imperative that NSSA’s current operations be changed to better reflect the realities of the labor market. The majority of people in our industry and throughout Zimbabwe are currently losing their employment well before they reach retirement age, he said.
Many laid-off people have trouble finding new jobs, and some don’t find a job until well into retirement age, according to Chikwekwete.
Therefore, rather than waiting for employees to reach retirement age, we implore the appropriate authorities to force NSSA to execute payouts sooner. Affected workers will be able to acquire money and start self-sustaining projects thanks to this,” he said.
Delayed payments could cause financial and health crises
He cautioned that long-term financial instability among jobless people may have detrimental effects on the economy and society, such as long-term physical and mental health problems.
“The timely payments made by NSSA will significantly reduce these adverse effects and help struggling employees,” he continued.
In light of Zimbabwe’s changing economic situation, CWUZ remains a strong supporter of labor reforms that help workers and highlight the need for long-term fixes for the country’s rising unemployment rate.
