Sunday Times

Digitisati­on sharpens fears about SA jobs

- DINEO TSAMELA and PALESA VUYOLETHU TSHANDU

THE fourth industrial revolution brings with it the promise of much prosperity. At events such as the World Economic Forum in Davos it is hailed as the answer to inequality, unemployme­nt and the education crisis.

Accenture’s digital collaborat­ion index forecasts that partnershi­ps between establishe­d corporatio­ns and start-ups based on innovative technologi­es could help raise GDP by $12-billion (about R170-billion).

However, in a labour-intensive economy such as South Africa’s, digitisati­on is bound to have an impact on unemployme­nt.

“Due to globalisat­ion, we have to move into times where companies are modernisin­g and digitising and moving away from the traditiona­l definition of work,” said Mamokgethi Molopyane, an independen­t labour relations consultant.

For companies such as FNB — which has been at the forefront of digital banking in South Africa — staff cuts are inevitable.

“As new disruptive technologi­es emerge and more efficient systems are set up, you will have to trim staff numbers,” said FNB CEO Jacques Celliers.

But, he added, FNB found ways to educate and reshuffle staff so that retrenchme­nts were a last resort.

Even so, as banks, manufactur­ers and retailers modernise to increase efficienci­es and cut costs through digitisati­on and robotics, a large contingent of skilled workers are left out in the cold as they have industry-specific skills, limiting their employabil­ity in other sectors.

Ben Venter, deputy general secretary of the South African Society of Bank Officials, said the union was aware of the impact technology would have. “We’re doing a lot of research into technology, trying to pre-empt the effect that it’ll have on our members. We have this uneasy feeling that it’s going to affect the sector in a big way. We are worried . . . in terms of the job numbers.”

Lee Naik, MD of Accenture Digital in South Africa, said employers were starting to consider how they could enhance staff skills.

More banks and IT firms are combining formal education, such as funding university degrees, with less convention­al approaches, such as massive open online courses, where, for example, a staff member could learn how to code in a 10-week course.

Molopyane said the problem with South Africa was that there wasn’t a solution to help those who were out of work to be reintroduc­ed to the workplace. She said private sector players needed to assist in this regard. “The private sector is reluctant to significan­tly upskill its workers. Employees need to be sent on high-level courses that add real value.”

She added that policymake­rs needed to be more deliberate about implementi­ng their proposed strategies.

Naik expressed the same sentiment, saying the National Developmen­t Plan would go a long way in assisting startups with skills and training.

Digitisati­on isn’t limited to banks and manufactur­ers. Pick n Pay is testing self-service checkouts at its Observator­y store in Cape Town.

The checkouts serve customers with only a few items.

The group said there were no immediate plans to roll out this model across its stores. The checkouts may nonetheles­s have an impact on the retailer, which has the stated aim of creating 20 jobs a day by 2020.

David North, Pick n Pay’s head of corporate and group strategy, said: “We are always looking at new ways to help our customers by making their shopping trip easier and more convenient.

“We are testing self-service checkouts in one store to see if it can save customers time at the till — particular­ly those in a hurry and shopping for just a few items.”

The retailer sees this as an additional service. “Staff are required to monitor self-service checkouts and there is no impact on employment,” said North.

 ?? Picture: BLOOMBERG ?? DIGITAL AGE: Partnershi­ps between corporatio­ns and start-ups based on innovative technologi­es, such as Uber, are fast gaining ground, but how will unskilled people fit in?
Picture: BLOOMBERG DIGITAL AGE: Partnershi­ps between corporatio­ns and start-ups based on innovative technologi­es, such as Uber, are fast gaining ground, but how will unskilled people fit in?

Newspapers in English

Newspapers from South Africa