Due to the uneven income strings within the country, the after effects of Corona Virus pandemic especially on Uganda’s economy are starting to emerge. Some companies within the country have taken decisive measures to match up the economic condition by laying off and calling off employees’ contracts. Recently, the government Uganda through her stake holders, called for compassion as business enterprises started terminating work contracts of their employees as a result of what they call negative business impact of the COVID-19 pandemic.
According to the minister of gender, labor and social development, Frank Tumwebaze while meeting with the press commented that the COVID-19 pandemic is temporary and has generally affected everyone and suggested that workers and employers must exercise patience and mutual understanding. He further reported that during a recent meeting of government, workers’ unions and the employers’ federation, together agreed that the dissolution of employees should be taken as the last decision, after all the available softer options have been tried.
The minister further stressed that the most affected businesses were majorly service delivering entities and cautioned product based businesses against laying off employees.
“The most affected sectors are tourism, hotel, and transport among others. Some sectors like manufacturing especially those involved in producing soap, sanitizers, toilet tissues, face-masks and other personal protective equipment should not use the excuse of COVID-19 to lay off their employees. These factories are reportedly experiencing growth in their businesses,” he said.
Earlier this month, Uganda’s central bank noted the COVID-19 pandemic has severely narrowed economic activities due to a combination of global supply chain disruptions, travel restrictions, measures to limit contact between persons, and the sudden decline in demand. Economic experts caution that this could lead to slow business and some enterprises may close over time.
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