Despite reports of unlawful dismissal of employees at the Private Sector Federation (PSF), Commerce Minister Monique Nsanzabaganwa has described the suspension as lawful.

In an interview with The New Times yesterday, Nsanzabaganwa defended the federation’s move, adding that it was primarily aimed at dealing with the ramifications of the global financial crisis.

"Within a period of about three months, PSF will have found out if the employees would be reinstated or not. I cannot call it a lay-off because that would mean they were sacked,” said Nsanzabaganwa under whose ministry PSF falls.

Some of the victims of the suspensions yesterday expressed discontent over the manner in which they were relieved of their duties.

While some said it was understandable that the layoff was due to financial constraints, others maintained that the federation should have given them an earlier notice.

"The criterion used was not good. Some of us had taken loans, how do they expect us to clear them?” said one former employees.

PSF last Thursday sent the majority of its staff on leave for three months as the federation’s management makes an assessment on whether they will be retained or laid off permanently.

The employees added that some of the victims had left workloads on their desks, citing an example of a trade fair that is being organized in Tanzania which was supposed to be attended by PSF officials from the Chamber of Arts and Crafts.

By press time yesterday, the PSF Chief Executive Officer, Emmanuel Hategeka, could not be reached for a comment on allegations of unlawful dismissal.

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