SOEs Given Three Months to Reduce Workforce
Amidst ongoing restructuring and downsizing efforts within state-owned enterprises, there are intensifying reports alleging that employees affiliated with the opposition Maldivian Democratic Party (MDP) are being systematically dismissed from their positions. Furthermore, corporations such as HDC and Fenaka have introduced voluntary redundancy schemes, offering employees the option to resign from the company with a severance package equivalent to three months' salary.
Effective July 13, a directive has been issued to limit the workforce to 33 percent for a duration of three months. | Finance Ministry
The Privatization and Corporatization Board (PCB) has directed State-Owned Enterprises (SOEs) to reduce their workforce by 33 percent within the next three months.
This directive follows an earlier instruction by the former Minister of Finance and Public Planning, Moosa Zameer, issued after the previous Local Council Elections. The aim of this measure is to streamline operations and enhance the management efficiency of government companies.
Referencing a circular issued in April, the PCB released a new circular last Sunday establishing a specific timeframe to achieve this target. The Board stated it would closely monitor the downsizing process and instructed all companies to submit weekly progress reports on their workforce adjustments every Sunday.
According to the directive, SOEs have been instructed to complete the 33 percent reduction in staff within a three-month period starting from July 13.
In line with these efforts, major corporations such as HDC and Fenaka have already introduced voluntary redundancy schemes. These packages offer employees the opportunity to resign voluntarily with a severance pay equivalent to three months' salary.
As companies proceed with these staff reductions, there have been increasing allegations of political targeting, specifically against employees affiliated with the opposition Maldivian Democratic Party (MDP). Concerns have been raised regarding the dismissal of staff who participated in campaign events for the recent Local Council Elections and the MDP Chairperson election. Additionally, there are reports of employees being subject to punitive transfers to remote sites or other islands.
