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Author Topic: World Cup a player in massive job lay-offs  (Read 1079 times)

Offline ronaldd

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World Cup a player in massive job lay-offs
« on: September 16, 2010, 09:41:29 pm »

'Double the retrenchment in one month'

Yesterday, Nerine Kahn, national director of the Commission for Conciliation, Mediation and Arbitration, told Parliament's labour committee that the CCMA received more referrals to mediate in the proposed retrenchment of more than 50 employees than ever before in a single month.

"It is so startling," she told The Times. "It is double the retrenchment in one month that we have seen in all recent months."

The number of referrals rocketed from 28 in June to 69 in July and was up from last year's peak of 49, also in July, when the effect of the global recession was at its worst.

"It may be a post-World Cup thing . we would not call it a trend until we have seen figures for at least three months," she said.

Labour analysts and economist were predicting for several months that thousands of workers would be laid off ahead of the World Cup as the preparation of stadiums, roads and other infrastructure wound up.

"We will be investigating these numbers urgently," said Patrick Craven, spokesman for labour federation Cosatu.

Kahn said the figures for August were still being finalised, but appeared to be very high.

She said the figures for retrenchments of fewer than 50 employees by a single company were also climbing at an alarming pace, with about 550 companies trying to slash their workforces in May.

She said the statistics for large-scale retrenchments reflected proposed lay-offs while those for small-scale retrenchments concerned people already let go.

Kahn said the government's R2.4-billion job rescue scheme known as the training layoff scheme had been slow to get under way, but was picking up steam.

Under the scheme, employers can access government funding to put employees on training programmes with reduced pay pending a pick up in the market.

Kahn said 55 applications for training layoff funding had resulted from CCMA negotiations by March. Of these, 35 had been recommended for the programme while the other applications had been denied or withdrawn.
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