‘Jobs bloodbath’ looms as retrenchments threaten 250,000 workers

Thabo Shole-Mashao (standing in for 702's Clement Manyathela) is joined by COSATU’s Parliamentary Coordinator Matthew Parks, Prof. Jannie Rossouw from Wits Business School, and spokesperson for the Ministry of Employment and Labour Thobeka Magcai.

Listen below:

It's being called a 'jobs bloodbath' – a number of major companies operating in South Africa have announced retrenchments, which could affect as many as 250,000 workers.

Among the companies set to lay off staff: Ford South Africa, ArcelorMittal South Africa, and Goodyear SA.

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Magcai says the job losses are of great concern to the Department of Employment and Labour.

"They will have devastating consequences for the families... the loss of a job goes beyond the department, it is a societal problem."

– Thobeka Magcai, Spokesperson - Ministry of Employment and Labour

Magcai says Minister Nomakhosazana Meth met with ArcelorMittal earlier this year, when the first reports of possible retrenchments surfaced.

"We had a sit-down with the management and they explained the situation. They cited various factors, including high electricity costs, the sluggish economy..."

– Thobeka Magcai, Spokesperson - Ministry of Employment and Labour

"Our mandate as a department is to protect jobs."

– Thobeka Magcai, Spokesperson - Ministry of Employment and Labour

Economist Prof. Jannie Rossouw says what the country is witnessing with the retrenchments is the result of very low economic growth for a prolonged period.

"Our economy has been stuttering along at less than 1% per annum economic growth... businesses are really struggling."

– Prof. Jannie Rossouw, Economist - Wits Business School

Is government doing enough, asks Shole-Mashao?

"No of course not! The government should adopt investment-friendly policies, the government should adopt a policy framework where it is attractive for new businesses to invest. What we need in South Africa is very rapid economic growth."

– Prof. Jannie Rossouw, Economist - Wits Business School

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