At least 45 000 jobs already under fire this year - Solidarity

18 August 2015

Tens of thousands of jobs at hundreds of companies are currently affected by retrenchment processes and employee confidence is at a three-year low. That is according to trade union Solidarity’s concise report on the current retrenchment crisis released at a media conference in Pretoria today.

According to this report compiled by the Solidarity Research Institute, it is evident from media reports alone that 45 000 jobs in 58 companies have been affected by staff reduction processes this year. A further 160 other companies where Solidarity members are employed, are undergoing similar processes.

Currently, employees in the mining sector are hardest hit by the retrenchments, followed by employees in the telecommunications and metal industries. Click here to read the executive summary; click here to read the concise report (PDF) in full.

However, Johan Kruger, Solidarity’s Deputy Head, believes that the crisis is stretching far beyond extensive reductions in a few large companies such as Telkom and Lonmin. “As a trade union, we daily receive enquiries from members at smaller companies that are embarking upon retrenchments on a less extensive scale. In June and July 2015, Solidarity had to deal with about 80% more retrenchment-related enquiries from members compared to the same period last year. When taking all these factors into account, one realises the true extent of the crisis,” Kruger explained. 

At the conference, Solidarity also presented an extensive emergency plan to deal with the retrenchment crisis. This plan involves several aid projects launched by the trade union in collaboration with Solidarity Helping Hand, among others, in order to limit the impact of the retrenchments on Solidarity members.

1. Legal advice

Section 189 and 189A of the Labour Relations Act provide that employers must consult extensively with trade unions when staff reductions are contemplated. By rights, the process should begin with a formal section 189 notice. The final number of employees to be retrenched, when their employment will be terminated, and what alternatives to retrenchment may be considered, should be determined during this consultation process. Solidarity has instructed its legal team to ensure that all retrenchment processes affecting its members must comply with these legal requirements.

2. Financial advice

Solidarity is concerned that employers in general are not doing enough to provide the employees with full information on the financial impact that their plans would have on individuals. Therefore, Solidarity instructed financial advisors to compile information brochures that outline the advantages, disadvantages and impact of the options presented by employers to their employees during retrenchment processes. Solidarity already provides telephonic financial advice to many of its members affected by retrenchments, and a further increase in these enquiries is expected in the coming weeks.

3. Counselling

Research has shown that most people affected by retrenchment processes often experience emotions comparable to those experienced by people after the death of a loved one. The initial stage is usually denial, followed by anger and frustration, and ultimately acceptance. If these emotions are not managed, they may have a devastating effect on employees and their families. Therefore, in collaboration with various churches, Solidarity Helping Hand appointed councellors to assist employees affected by retrenchments.

4. Assistance to job seekers

Solidarity believes that retrenched employees should be readmitted into the labour market as soon as possible as retrenchment packages only provide a temporary solution. Therefore, Helping Hand provides a free Afrikaans platform called WerkNet where jobseekers may upload their CVs free of charge and get in touch with potential employers. Here individuals can also get free advice on drafting a professional CV, and they will also be assisted by a professional recruitment agency. Click here to register.

Johan Kruger
Deputy General Secretary: Solidarity

Piet le Roux
Head: Solidarity Research Institute

Dirk Hermann
Chief Executive: Solidarity

Statement issued by Solidarity, August 18 2015