As the world prepared for International Labour Day (May 1), workers globally faced severe distress from the pandemic's socio-economic consequences.
The International Labour Organisation's initial assessment projected "almost 25 million people out of employment, underemployment and working poverty unless a decisive, coordinated and immediate response is adopted globally."
The Layoff Problem
Many companies adopted layoffs as their primary cost-reduction strategy. However, this approach "defeats its purpose and further burdens and marginalises the already distressed employees."
Vulnerable populations—including youth, elderly workers, the sick, women, and migrant workers—faced disproportionate impacts in Uganda's labor market.
Alternative Measures
The article advocates for alternatives: working half-time, unpaid leave agreeable by employees, halting bonuses, bans on overtime, and other cost cutting measures. This approach would preserve employment while allowing workers certainty about their future.
Economic Impact
Uganda's growth was revised downward from 6-5 percent, potentially pushing 780,000 to 2.5 million Ugandans below the poverty line. The response requires social dialogue capable of facilitating social protection and supporting employment retention alongside fiscal and monetary policy support.
