Confederation of Zimbabwe Industries president Mr Busisa Moyo says businesses face collapse as a result of provisions of the Labour Amendment Bill should they be adopted at law.

Companies, both public and private, have fired an estimated 20 000 workers since July 17 when the Supreme Court ruled in a case involving Zuva Petroleum and two employees that contracts could be terminated upon serving of three months’ notice.

Mr Moyo yesterday said: “We have a problem with the Bill on three fronts.

‘‘One is that it is against tripartite negotiating forum because the submissions that we made in consultations on the Bill were completely ignored.

“Secondly, we feel that while Government is trying to avert mass dismissals these provisions will leave the companies broke, a situation that will then lead to company closures due to liquidations and company shut downs because companies do not have the money to pay.

“Thirdly, this law sends negative signals to investors because they will flee at the prospect of having to put up with huge labour costs. We actually want to see whether we can legally challenge that aspect of making the law to operate in retrospect.”

Business has long held that the cost of labour in Zimbabwe are high and are stifling growth.