As part of its rightsizing plan, the federal government has determined to terminate the daily wage earners under its performance by various government departments and ministries. The establishment division has decided to shift the services of such employees to the surplus fully effective from the 30th of September 2024.
A formal notification has been released in this regard, claiming that all daily wage earners under it have been notified in line with the government’s orders and the rightsizing policies. Therefore, all such employees are hereby informed that the establishment division no longer needs their services after the 30th of September.
Impacts of the decision to terminate and re-assigned employers as part of the Federal Gov right-sizing plan may include the following.
- Firstly, employers might face issues with decisions like immediate unemployment or job insecurity, which will lead to financial strain and anxiety for their families and themselves. Furthermore, without proper re-employment support or training, it is expected to result in long-term unemployment, particularly for those nearing retirement or with restricted skills.
- Secondly, re-assigning is expected to streamline government operations by minimizing redundant positions. Potentially, this leads to more effective use of resources by firms during the long term. In the short term, it is expected to cause disruptions as many employers try to adjust to increased workloads and the redistribution of other tasks.
- Thirdly, the uncertainty and reduced jobs will lead to low morale among the remaining working class, feasibly minimizing productivity and creating a sense of job insecurity. A large-scale termination is expected to highly impact organizational culture, which will lead to mistrust of leadership or a tendency to invest emotionally in the job.
- Fourthly, a hike in unemployment is expected to strain social welfare systems and minimize household spending, which may create a ripple effect on the local economy. Meanwhile, large-scale layoffs may produce social unrest or dissatisfaction, particularly in regions heavily dependent on government employment.
- Fifthly, the initiative is expected to lead to legal disputes or challenges if proper labor laws on contract agreements are not executed or followed. Besides this, there may be institutions over the fairness of the process, particularly if there is a lack of transparency or favoritism in determining who is laid off. These impacts should be kept in mind to manage through clear support systems, clear communication, and alternative solutions to combat these effects.