South Africa is in the grip of a retrenchment fear. The Annual Report of the Commission for Conciliation, Mediation and Arbitration (CCMA) for 2018-19, revealed that some sectors were hit hardest by retrenchments and other sectors are showing vulnerability.
The Commission received a total of 529 large-scale retrenchment cases referred under section 189A of the CCMA in 2018-19. The comparable number for the year ago (2017-18) was 488 referrals. This means that retrenchment for the last financial increased by approximately 8% on a year on year basis.
In absolute terms, of the 38,588 employees who were referred to be retrenched under section 189A for the large industries, 15,787 jobs were saved (41%). Actual retrenchments were recorded at 21,391. Sector –wise break up is also given with building and construction leading the pack. A total of 3584 jobs were lost followed by the mining sector (3,260), and metal sector (1,741).
There was also increase in retrenchment in the small sector as well. A total of 6,600 small-scale retrenchments, under the applicable provision of section 189 were referred in 2018-19 financial year, representing a 1% increase compared to the 2017-18 financial year of 6,514. CCMA could not do much to save the jobs under this category since the small sector already initiated retrenchment actions before referring to CCMA.
Analysts say that CCMA could not have done any better since rigid stipulations can hardly be implemented in the small sector, because of the deep financial distress they face and mostly informal nature of the sector, though they may be registered. The CCMS maintains that it would intensify the efforts to save jobs in 2019-20. However, the reality is that the organization can do precious little, if the economy is dithering as has been the case in the last few years. But the worrying fact is that the economy is showing no signs of picking up, despite of late, some studies depicting a rosy picture of pick – up of the economy in the near future.
In a related incident, President Cyril Ramaphosa said that a decade of corruption under Jacob Zuma, his predecessor is likely to have cost South Africa more than R500bn. The impact of years of graft under Mr Zuma, was even greater than previously thought. It is reported that under Zuma, South Africa has incurred a loss between R1tn and R1.5tn in missing tax revenues and a lack of foreign investment in addition to the direct costs of graft.
