Decline in Swaziland's sugar and textile industries prompts major lay-offs

JAMES HALL MBABANE – Retrenchments of drivers and other employees is underway at Swazi road freight companies in response to the declining fortunes of the sugar and textile industries. “The companies say they have lost a number of tenders in the sugar belt, and are left with no option but to retrench workers,” Bhutana Nkonde, secretary general for the Swaziland Transport Allied Workers Unions, told FTW. The European Union, Swaziland’s largest sugar importer, recently renegotiated its purchase agreements, and will be paying 37% less for the commodity. Higher prices for Swazi sugar, caused by a rise in the national currency that is tied to the dominant South African rand, is making the product less competitive internationally, at a time when a declining local economy is limiting domestic sales. Cargo Carriers, which deals primarily with sugar and is the country’s largest road freight company, plans to lay off 60 drivers. Another firm, Birkenstock, will retrench 68 employees. Smaller companies are expected to lay off about 100 workers, combined.