News Desk
MALÉ — Senior figures and opposition lawmakers within the Majlis have launched a scathing attack on the government’s directive to slash the workforce of state-owned enterprises (SOEs) by 33 percent, condemning the impending job cuts as a politically motivated purge that threatens to destabilise thousands of households.
The outcry follows a renewed directive issued last week by the Privatization and Corporatization Board (PCB), instructing state-linked corporations to implement workforce reductions over a three-month period—a policy originally tabled in April.
Speaking out against the mandate, Maldivian Democratic Party (MDP) President and former Foreign Minister Abdulla Shahid accused the administration of using the PCB as a shield to systematically dismiss opposition members and reform advocates from public sector roles. He claimed the cuts are designed to clear room for ruling party activists under the guise of fiscal restructuring.
“Dismissing citizens indiscriminately while replacing them with political loyalists during a time of severe economic hardship and soaring living costs is an act of cruelty,” Shahid said. He called on the administration to immediately halt the restructuring, alleging that state funds are being squandered on political appointments while ordinary workers face destitution.
The sentiment was forcefully echoed in Majlis by Kendhoo MP Mauroof Zakir during a debate on a resolution he submitted to address the wave of state dismissals. Mauroof characterized the current administration as the most anti-labour government in recent history, going as far as comparing the treatment of Maldivian workers to colonial servitude.
He also criticised the institutional placement of labour rights under the Ministry of Homeland Security and Technology, arguing that the shift has effectively framed workers’ grievances as national security threats rather than labour rights issues. Furthermore, Mauroof accused President Dr Mohamed Muizzu of abandoning pre-election promises made to resort staff, healthcare workers, and educators regarding overtime ceilings, housing facilities, and regularised leave.
Scale of the Economic Fallout
Elaborating on the human cost of the policy during an MDP press conference, former Economic Minister and MDP Chairperson Fayyaz Ismail warned that reducing state enterprise headcounts by a third would leave approximately 14,733 workers jobless.
Fayyaz noted that the fallout extends far beyond individual employees, estimating that the livelihoods of upwards of 50,000 dependents—representing roughly 20 to 25 percent of the national population—would be directly impacted by the sudden loss of income. He contrasted the current strategy with the approach taken by the previous MDP administration during the COVID-19 pandemic, pointing out that his government had spent 419 million Rufiyaa to support over 22,000 workers facing income shocks rather than cutting jobs.
Legal Challenges Underway
Amid the growing backlash, the opposition has mobilised legal resources to contest the terminations. Hassan Latheef, a senior official heading the MDP’s oversight office, announced that legal teams and volunteer lawyers are providing pro bono assistance to affected employees.
According to Latheef, 37 formal cases have already been registered with the Employment Tribunal, with preparations underway to file dozens more. The opposition has urged the Human Rights Commission of the Maldives to investigate the dismissals, placing direct responsibility for the crisis on President Dr Mohamed Muizzu and the leadership of the privatization board.
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