‘Significant’ increase in retrenchments - CCMA
The Commission for Conciliation, Mediation and Arbitration (CCMA) says retrenchments shot up during May and June.
Many companies have had to resort to laying off staff due to the economic damage brought on by the Covid-19 pandemic and subsequent hard lockdown imposed by the government.
Many more people are expected to lose their jobs due to the economy, which is expected to suffer anything between a 7% and double-digit contraction for 2020.
CCMA Commissioner Haroun Docrat says retrenchments were prevalent in both the private and public sectors.
He says the mining and food sectors were the hardest-hit.
"Actual retrenchments were recorded at 6 713. The highest number of job losses were recorded in the mining sector 3 056 followed by food and beverages sector 1 631 and lastly by the manufacturing sector at 324.
"Over the past financial year, we would on average receive 70 referrals. The number has doubled to over 200 cases in June which is concerning because we have already had a high number of retrenchments.
He adds: "For the month of July, the CCMA received 190 large-scale retrenchment referrals and 1 307 small-scale retrenchment referrals.
"These matters are currently in process and an indication on the number of job losses and those saved in large-scale retrenchment processes will be updated in September owing to the 60 days’ requirement that may be extended for the process to be finalised.”
