CCMA springs into action to stem wave of retrenchments

THERE had been an upsurge of retrenchment notices affecting thousands of workers since the last global economic crisis, the Commission for Conciliation, Mediation and Arbitration (CCMA) and trade union Solidarity said yesterday.

The CCMA said the recent increase in mass retrenchments referrals had given rise to the CCMA embarking on an urgent action plan to support businesses in distress, with 23 231 jobs at stake in the first quarter.

The number is from largescale referrals received so far. It equals 40 percent of the referrals received last year being in a single quarter.

The CCMA said a job insecurity crisis committee and task team had been established to ensure that there was sufficient capacity to implement an action plan.

It said a comprehensive assessment of the national job insecurity situation would be conducted with a focus on identifying high risk sectors.

Social partners would be engaged, focusing on establishing the technical aspects of businesses in distress and job insecurity, the CCMA said.

This included joint collaboration regarding early warning and intervention systems, preventing business closure and job loss, post retrenchment support, facilitation of sector sustainability initiatives and assisting businesses in distress to access enterprise support, promotion of sectoral employability and employment security, training and awareness raising.

The CCMA said this would result in a job saving indaba.

CCMA director Nerine Kahn said: “This action plan is part of the CCMA’s job security strategy, which is underpinned by three principles: leave no stone unturned in the quest to find alternatives to retrenchment; where retrenchments are unavoidable, do not allow any worker to walk into the sunset without access to support mechanisms; and where business enterprises are in distress, in partnership, facilitate lifeboat rescue to prevent business closures.”

A report by Solidarity said that South Africa faced more than 60 000 job losses this year, in industries ranging from mining to aviation.

Citing media reports, the union said more than 45 000 jobs were at risk at 58 companies.

It said a further 160 other companies, where Solidarity members were employed, were undergoing similar processes.

South Africa has an unemployment rate of 25 percent.

Possible closure

Mining and commodity trader Glencore was reviewing its Eland platinum mine and had informed the government and trade unions of a possible closure due to falling metal prices, it said yesterday.

Depressed commodity prices, rising labour costs and increasing electricity tariffs have also forced other platinum producers such as Lonmin and Anglo American Platinum to consider shedding jobs.

“Glencore has informed the Department of Mineral Resources and relevant unions of the potential closures,” the company said.

“The closure would affect just under 1 000 jobs at the mine,” said Solidarity’s general secretary Gideon du Plessis said.

Solidarity had about 80 percent more retrenchment-related enquiries from members in June and July compared with the same period last year, said Johan Kruger, the union’s deputy head. – Additional reporting by Bloomberg and Reuters