MDP urges govt to halt SOE layoffs without worker support

The opposition Maldivian Democratic Party (MDP) has called on the government to suspend planned workforce reductions at state-owned enterprises (SOEs) until measures are in place to support employees who lose their jobs.

The party made the call at a press conference on Tuesday in response to a directive issued by the Privatisation and Corporatisation Board (PCB) requiring SOEs to reduce their workforce by 33 per cent within three months.

Former MDP chairperson Fayyaz Ismail said the planned reduction could result in about 14,733 job losses.

He said decisions affecting such a large number of workers should not be implemented without a plan to support those who would be displaced.

"When throwing these individuals out of their jobs, consider how many households rely on their income. The livelihoods of 14,000 employees directly impact at least 5,000 families, which represents roughly 20% to 25% of the Maldivian population," Fayyaz said.

Fayyaz said that during the COVID-19 pandemic, the previous MDP administration provided income support to 22,945 people who had lost their jobs or income through a programme costing more than MVR 4 billion.

He said the programme helped households, businesses and the wider economy recover.

Referring to the PCB's workforce reduction plan, Fayyaz said the exercise should not proceed without first identifying the underlying issues within state-owned enterprises.

He argued that management should be held accountable before reducing the number of lower-level employees.

"PCB President Mohamed Nizar claiming legal authority to throw 14,733 Maldivians onto the streets and impoverish thousands of households is simply unacceptable. If Nizar is being forced to execute this against his will, he should resign and go home," Fayyaz said.

He also questioned whether the PCB had assessed the operational requirements of individual companies before directing all SOEs to reduce staff by the same percentage.

Former MP Hassan Latheef also criticised the workforce reduction, saying employees on probation were being retained while staff with more than 15 years of service were being dismissed.

He presented estimates of the number of employees who could lose their jobs at major state-owned enterprises if the 33 per cent reduction is implemented. The figures included 2,607 employees at Fenaka Corporation, 1,416 at Maldives Airports Company (MACL), 1,350 at the State Trading Organisation (STO), 1,287 at Road Development Corporation (RDC), 1,180 at Waste Management Corporation (WAMCO), 191 at Fahi Dhiriulhun Corporation (FDC), 102 at Maldives Post Limited, 69 at Agro National Corporation and 15 at Maldives Hajj Corporation.

Hassan called on the PCB to disclose the criteria used to determine the workforce reduction and to publish the staffing requirements for each enterprise. He also urged the government to introduce retraining programmes, support displaced workers in finding new employment and create alternative sources of income before implementing compulsory layoffs.