An estimated 310 000 workers stand to lose their jobs in widespread retrenchments, which began in July and are expected to continue until next June, according to trade union Solidarity.
Paul Joubert, a researcher at Solidarity, said the union had arrived at this figure by extrapolating the current economic conditions and announced retrenchments, and studying job loss patterns during the economic downturns of 1988, 1993 and 2001.
In its report released yesterday, the union said 32 companies were already retrenching about 22 000 employees. The hardest-hit sectors were mining and manufacturing.
Firms that had announced retrenchments included:
- Ford (800);
- ArcelorMittal (2 000 contract workers);
- DRDGold (1 700);
- Lonmin (5 550 plus 1 400 contract workers);
- Uranium One (2 600 contractors and employees);
- New car dealers (3 500);
- Second-hand dealers (1 500);
- Absa (1 210); and
- Mutual & Federal (600).
The job losses would raise the nation's already high rate of unemployment to 25 percent in the first quarter of next year, up from 23 percent in the second quarter of this year.
"If … every employee supports between seven and 11 dependants, it means that between 150 000 and 200 000 people will be affected by the retrenchments," said the union.
Describing the situation as a "labour recession", Dirk Hermann, Solidarity's deputy general secretary, said South Africa had experienced net job losses of 74 000 in the third quarter and the situation was expected to worsen in the fourth quarter.
Hermann explained that job cuts in primary industries raised the possibility of job losses in the secondary support sectors, such as suppliers.
full story from Business Report here
Did you like this article? Share it with your favourite social network.