section 1

Inhoudsopgawe
1. Die impak van afleggingsprosesse – Gideon du Plessis
2. Grafiese voorstelling van afleggings in verskillende bedrywe
3. Afleggingstatistieke (April 2015 - April 2016)
4. Media-analise van afleggingsprosesse die afgelope jaar
5. Maatskaplike plan: Posteverminderings en afleggings
Die impak van afleggingsprosesse
Deur Gideon du Plessis
Solidariteit is tans by tientalle afleggingsprosesse betrokke wat duisende werknemers raak.
Die meeste afleggings vind in die volgende sektore plaas: mynbou-, vervaardiging-,
telekommunikasie-, chemiese en die finansiële sektor.
Die getal werkers wat afgelê word, is egter ’n druppel aan die emmer in vergelyking met die
getal werksgeleenthede wat verlore gaan en die werklike verkleining van die Suid-Afrikaanse
werkmag wat na afloop van ’n formele afleggingsproses plaasvind.
’n Formele afleggingsproses word normaalweg voorafgegaan deur ’n sogenaamde
natuurlike omsetproses waar vakante poste nie gevul word nie; kapitaalprojekte op ys
geplaas word wat nuwe werksgeleenthede sou skep; aanloklike vrywillige skeidingspakkette
beskikbaar gestel word en werknemers wat na aan aftree-ouderdom is, versoek word om op
vervroegde pensioen te gaan en die uiteinde is ’n groot afname in personeelgetalle voordat
die gedwonge afleggingsproses ’n aanvang neem. By Lonmin byvoorbeeld het die
maatskappy met 5 108 personeellede gekrimp weens die voorafgenoemde natuurlike
omsetproses (wat 51 sterfgevalle ingesluit het), terwyl slegs 78 werkers formeel afgelê is. By
Telkom weer het 4 500 werknemers oor die afgelope 12 maande vrywillige pakkette aanvaar
nog voordat die formele afleggingsproses vanjaar ’n aanvang geneem het.
Daar is egter ’n verdere vermenigvuldigingsfaktor wat veral in die mynbedryf en in die
metaal- en ingenieurswese-sektor voorkom rakende eksterne werksgeleenthede wat verlore
gaan as permanente werknemers afgelê word. In die mynbousektor word 1,7
werksgeleenthede in die dienstesektor geskep vir elke permanente pos wat geskep word.
Overgesetsynde beteken dit dat 1,7 poste verlore gaan vir elke permanente pos waarmee ’n
mynmaatskappy krimp. Weens die arbeidsintensiewe aard van die vervaardigingsektor is die
situasie in dié sektor veel erger waar vier eksterne poste by diensverskaffers, kontrakteurs
en ondersteuningsdienste verlore gaan vir elke permanente pos wat afgeskaf word. So was
daar nagenoeg 2 000 werkers by Highveld Steel afgelê, maar 13 000 persone buite Highveld
Steel is ook direk nadelig geraak.
Wat die situasie in die mynbousektor vererger is die feit dat navorsing van die Kamer van
Mynwese aantoon dat intreevlakmynwerkers nagenoeg tien afhanklikes het wat beteken dat
vir elke aflegging tien afhanklikes in armoede verval.
Die toename in werknemers wat vrywillige pakkette aanvaar, neem op ’n kommerwekkende
wyse toe omdat talle werknemers eenvoudig ’n versadigingspunt bereik om onder soveel
onsekerheid te werk dat hulle vrywillige pakkette aanvaar, ironies genoeg om so self beheer
oor hul toekoms te neem. Die uiteinde is meestal die verkeerde aanwending van pakket- en
pensioengeld wat daartoe lei dat dit algemeen voorkom dat werkers se geld opgeraak het
nog voordat hulle weer ’n ander werksgeleentheid kon kry. Dit dompel dan die werker en sy
of haar afhanklikes in armoede en maatskaplike verval tree in.
Weens die huidige vlaag van afleggings wat algemeen voorkom, word dit al hoe moeiliker
om alternatiewe werk te vind en dit gebeur meestal dat diegene wat wel ander werk kan
vind, ’n laer salaris ontvang of ’n korttermynwerksgeleentheid aanvaar, wat beteken dat talle
gesinne hul lewenstandaard so moet aanpas dat dit uiteindelik ’n oorlewingstryd word. Die
teenoorgestelde gebeur egter ook dat werkers met skaars vaardighede vrywillige pakkette
neem en die land verlaat vir groener weivelde oorsee tot nadeel van Suid-Afrika. Weens die
vlaag van afleggings is daar egter nou ook sekere ambagte waarvoor daar eens ’n tekort
aan vaardighede bestaan het, waar daar nou weens die afleggings ’n ooraanbod van
eertydse skaars vaardighede voorkom veral in die mynbedryf.
Wat verder kommerwekkend is, is dat die huidige patroon en vlaag van afleggings baie
ooreenstem met die situasie teen die einde van 2008 en aan die begin van 2009. Dit was
uiteindelik die voorloper van die resessie. Verder is dit opvallend hoe een groot afleggingsaankondiging geneig is om tot ’n stortvloed van soortgelyke afleggings in ’n bepaalde sektor
te lei asof dit die bottelnek oopmaak as een maatskappy die leiding neem en die aanvanklike
kritiek absorbeer. Dit maak dit dan “veilig” vir ander maatskappye om ’n soortgelyke proses
aan te kondig.
Minister Zwane, die nuwe minister van minerale bronne het egter self so ’n stortvloed van
afleggings veroorsaak toe hy in Januarie vanjaar by die opening van die jaarlikse mynbouindaba aangekondig het dat nagenoeg 36 000 mynwerkers in 2016 hul werk gaan verloor.
Dit mag dalk waar wees, maar die minister het so onwetend die politieke groen lig gegee vir
afleggings wat ’n stortvloed van mynbou-afleggings tot gevolg gehad het – ’n fout wat sy
twee voorgangers nooit gemaak het nie. Hulle het eerder deurgaans gedreig dat myne se
mynlisensies in gedrang gaan kom as hulle werkers aflê.
Wanneer die ekonomiese opswaaifase weer aanbreek, gaan dit egter nie tot grootskaalse
indiensname lei nie, want baie besighede en myne is ondertussen besig om te meganiseer
en te outomatiseer wat beteken dat indiensname by sodanige werkplekke geleidelik gaan
afneem soos wat masjiene mense vervang. Dan het soveel besighede al hul
kontantreserwes uitgeput en/of is skepties oor die duur van die moontlike opswaaifase dat
dit lank kan duur voordat kapitaalprojekte geïnisieer kan word om indiensname weer te
verhoog.
Dit is dan ook veral buitelandse beleggers wat baie traag gaan wees om weer in veral SuidAfrika se myne en sy vervaardigingsektor te kom belê weens swak arbeidsverhoudinge en ’n
onsekere regulatoriese omgewing. Dit sal beteken dat soos in die vorige opswaaifase ander
ontwikkellende lande voormalige Suid-Afrikaanse beleggers gaan lok. Dié lande sal steeds
oor die nodige vaardighede beskik om groei te bewerkstellig, terwyl ons weer vaardige
werkers sal moet teruglok of oplei as ’n uitvloeisel van die huidige afleggingsprosesse wat
werkers op alle vlakke raak.
Solidariteit
Solidarity
Deel van die solidariteit beweging
Moontlike afleggings volgens bedrywe waarin Solidariteit georganiseer is:
Getal afleggingsprosesse van
die afgelope jaar:
88
Getal moontlike
afleggings:
58 549
Mynbedryf
Metaal - en
ingenieursbedryf
Individuele
lede
Professionele
bedryf
Chemiese
bedryf
IKT
0861 25 24 23 | www.solidariteit.co.za
AFLEGGINGSKRISIS-STATISTIEK 2015/16
MAATSKAPPY
AANTAL
WERKERS
GERAAK
DATUM
Chemiese Sektor
Canelands
Colgate Palmolive Boksburg
Nampak DivFood
NOC Oil and Gas Services
Verref Shaped (pty) Ltd
Chemspec (Chemical Specialities)
6
29
133
53
46
174
400
2016/02/18
2016/02/18
2016/02/24
2016/03/18
2016/02/18
2015/08/09
835
Kommunikasiesektor
Media24
MTN
Telkom
CELL C
TELKOM (2)
MAIL & GUARDIAN
2
12
255
47
7800
25
6
2016/02/18
2016/04/18
2016/03/16
2015/05/08
2015/05/04
2015/07/02
8141
Individuele lede
Brolaz Projects
Christian Art Distributors
Dimension Data
Harvard Cafe
JD Group
Permian Holdings
Samoro Memorials
EEERSTE RIVER YOUTH REHABILITATION
CENTRE
National Youth Development Agency
South African Post Office
10
33
19
4
1
1800
1
1
2016/03/02
2016/02/18
2016/04/18
2016/04/19
2016/03/02
2016/04/18
2016/04/20
40
2015/07/02
60
5065
2015/06/22
2015/04/15
7024
Metaal en Ingenieursbedryf
Air and Allied
David Brown Gear Industries
Dynamic Machinery
DCD Group
ERD Fab Sasolburg
Evraz Highveld Steel
Evraz Highveld Steel (Kontrakteurs)
High Duty Castings
Mogale Alloys Krugersdorp
NDT Projects
SA Compensators
Samancor Smelters
Steinmuller / Bilfinger
Sulzer Pumps
Transalloy
Turnmill Proquip Engineering
Vanchem Vanadium
Viva Engineering Projects
Scaw Metals Group
Macsteel
ARCELORMITTAL SA
Aveng Trident Steel
I.G. Tooling
ARGENT INDUSTRIAL
24
7
17
33
245
32
1721
400
55
14
14
18
280
250
35
40
15
460
32
1000
600
1200
700
470
280
2016/04/18
2016/04/19
2016/02/22
2016/04/01
2016/02/18
2016/02/18
2016/02/18
2016/02/12
2016/02/18
2016/02/23
2016/02/18
2016/02/18
2016/02/18
2016/03/31
2016/04/12
2016/04/19
2016/02/18
2016/04/04
2015/08/05
2015/07/30
2015/07/24
2015/05/08
2015/04/24
7918
Mynbou- en Sementsektor
Afrisam Sement
Anglo American Platinum
Assmang Black Rock
Assmang Khumani
Aveng Moolmans (Black Rock)
Aveng Moolmans (King en Kolomela)
Aveng Moolmans (Sishen)
Booysen Bore
Bokoni Platinum
De Beers Venetia
Dilokong Chroomyn
Exarro Arnot
Exarro (Support Services & Corporate
Office personeel)
Hitricon
Hotazel Manganese Mine (South 32)
Joy Global Inc
Kontrakteurs op Sishen
Kumba (Sishen)
Lonmin
Lower Orange River mines
Lyttelton Dolomite
300
2000
395
250
57
175
600
40
2600
214
2000
1600
2016/02/18
2016/03/03
2016/02/18
2016/02/18
2016/02/18
2016/02/18
2016/02/18
2016/02/18
2016/04/05
2016/02/18
2016/02/01
2016/02/18
565
2016/04/18
200
400
68
1300
2633
5108
125
15
2016/02/18
2016/02/18
2016/03/16
2016/02/18
2016/02/18
2016/03/04
2016/02/22
2016/03/10
Murray & Roberts Venetia
Northern Cape Iron & Steel cc
Platchro Mining Services
Protea Coin (Harmony goudmyn)
Samancor Mines
Sheltam Rail Randfontein / Virginia
South 32
Tau Mining
Tshipe Ntle Manganese
Vantage Goldfields Lily Mine
Harmony Gold
KUMBA IRON ORE (3)
31
7
50
14
1700
22
620
175
365
800
400
1160
2015/07/17
CAPITAL DEVELOPMENT SERVICES (CDS)
165
2015/07/06
Harmony Gold
3100
2015/06/03
7
No press
reports. Staff
were told on
29 June 2015
about
impending
layoffs
Kamer van Mynwese
36
2016/02/18
2016/02/18
2016/02/18
2016/03/15
2016/02/18
2016/02/18
2016/02/18
2016/02/18
2016/02/18
2016/02/18
29261
Professionele Bedryf
Denel Strategic Skill Agreement
ABSA
NWU
FNB
VME
Unisa
6
62
1952
55
1151
150
2000
5370
Totaal
88
58 549
2016/02/18
2016/03/29
2016/03/31
2016/03/16
2016/02/18
2015/04/09
MEDIA REPORTS ON COMPANY RETRENCHMENTS AND FORESEEN OR
POSSIBLE JOB LOSSES IN THE PERIOD AUGUST 2015 TO MARCH 2016
This report identifies and summarises reports that appeared in the mainstream South African media
in the period 11 August 2015 to March 2016 covering retrenchments (compulsory layoffs, voluntary
separations packages (VSPs), early retirement packages) as well as possible staff reductions as made
known in terms of notices to trade unions under the Labour Relations Act. It also covers general
reports on job losses foreseen. It follows on from a similar exercise covering the period 1 January
2015 to 11 August 2015, which was referred to in a Solidarity Research Institute (SRI) report entitled
“Concise Report on retrenchment in 2015 – some indications”, which can be accessed here.
Some of the reports refer to processes which were commenced in the earlier period and which were
continued with or finalised during the period covered here.
It should be noted that media reports generally only cover retrenchments at large or prominent
companies and do not give a representative picture of the extent of retrenchments in the economy
as a whole. Moreover, the information contained in the reports may not necessarily be accurate.
The reports have been grouped into the following sections:
A.
B.
C.
D.
Mining industry (largest number of reports)
Steel sector (particular circumstances related to cheap imports)
Telkom (various processes embarked upon)
Other companies
CCMA AND OTHER PERSPECTIVES ON RETRENCHMENT PROSPECTS
In a Sunday Times interview in March 2016, Cameron Morajane, newly appointed director of the
Commission for Conciliation, Mediation and Arbitration (CCMA), indicated that the statutory body
was bracing itself for a “massive increase” of retrenchment referrals. He said that some 687 cases a
day were already being referred to the CCMA, which represented an increase of almost 23% over
the past five years. But the deteriorating economic situation, together with last year’s labour law
amendments meant that number would “rise sharply”. The amendment entitle contract workers to
be treated as permanent employees, receiving the same rights and benefits if they have been with a
company for six months, and employers have responded by dismissing their contract workers “in
large numbers’, according to Morajane. In addition, “a number of major companies are heading
towards very serious large-scale retrenchment.”(Page 8 of Sunday Times Business Times of 20 March
2016)
In an earlier report in November 2015, the CCMA indicated that small business sector experienced a
major increase in retrenchment cases in the past two years and was “bleeding jobs” (The New Age
report of 17 November 2015).
In confirmation of the above, the Standard Bank and Markit’s seasonally adjusted Purchasing
Managers Index (PMI) for March 2016 showed a sharp decline in new staff appointments, with 9% of
companies indicating an intention to shed employees (see Netwerk24). See too, Werkgewers traag
om meer mense aan te stel, at Netwerk24
The Manpower SA employment outlook report released on 7 March 2016 that job creation in
agriculture, manufacturing, and the wholesale and retail trade would remain under pressure in the
2
second quarter, as employers looked to contain costs and keep their operations afloat. A total 13%
out of 752 respondents planned to hire more people, 8% were looking at retrenching staff, while the
rest would keep numbers unchanged (see BDLive).
ESKOM TARIFF INCREASE
Eskom tariff hike could cost 40,000 jobs, notes Numsa
It was reported that the National Union of Metalworkers of SA (Numsa) would consider legal options
following Eskom being granted a 9.4% tariff increase as the union believed this might lead to job
losses. The union’s general secretary Irvin Jim said that the organisation was outraged at the
increase and that it would hit working-class consumers hard as they were already struggling with
rises in school fees, transport costs and food prices (2 March 2016).
The Chamber of Mines also warned that if Eskom’s application was approved, 40,000 jobs could be
lost (5 Feb 2016). If the 8% tariff hike was approved, it would take the annual tariff increase to
16.6%. This would jeopardise an additional 20,000 of the 119,000 jobs remaining in the gold sector,
and another 20,000 of the 189,000 jobs in the platinum sector, the CoM claimed.
Read this report in full at Miningmx. See too, 'Eskom tariff increase could lead to 40,000 job losses in
mining sector', at EWN. The CoM’s press statement on this matter is at Polity
Report by Amy Musgrave at IOL News. Read Numsa’s press statement at Polity
Eskom tariff increase to cost SA 5,000 jobs and another increase looming - Moneyweb
00:25
(Narrative still to be included)
A. MINING SECTOR
General perspectives
The mining sector is under pressure from rising input prices, weak demand and low global
commodity prices. According to Nedbank economist Busisiwe Radebe, the outlook for the mining
sector for this year remains poor.
A number of industry leaders and sources have expressed their perspectives on likely job losses in
the mining sector, viz.:



The National Union of Mineworkers (NUM) warned of massive job losses, charging that the
figure could balloon to 100,000 this year after Anglo American announced its was shedding
some of its assets. It said a conservative figure of losses within the next three months was
36,773 (Business Report of 1 March 2016).
The Chamber of Mines disputes this, claiming the unemployment figures to be higher. Read this
report by Dineo Faku in full at Read too, Over 36,000 mining jobs under threat in next three
months, says NUM, at BDLive. And also, NUM working with CCMA to reduce workers affected
by mining job cuts, at EWN
According to Roger Baxter, CEO of the Chamber of Mines of SA, the South African mining sector
cut 47,000 jobs between 2012 and early 2015 as the industry grappled with soaring costs and
3
low commodity prices. Mineral Resources Minister Mosebenzi Zwane said recently a further
32,000 jobs were under threat, and the industry was working closely with the government and
labour to minimise job losses.
Report by Allan Seccombe in full at BDLive
DMR response to job cuts
Minister of Mineral Resources, Mosebenzi Zwane, said that a declaration signed by government,
mining companies and labour unions put 16,000 potential job losses in the mining sector on ice. He
was briefing Parliament on the state of job losses in the industry. Acting Director General David
Msiza said the declaration, which has been in place for the past six months, has yielded positive
results (2 March 2016). Fin24. Read too, South African government, mining firms agree to delay
16,000 job cuts, at Mining Weekly.
Mining unions dispute the statement by the Minister of the DMR. They say that while 32,000 mine
workers’ jobs are in jeopardy, the task team meant to stop retrenchments in the industry has not
met once since it was appointed in August. The task team was the initiative of former mineral
resources minister Ngoako Ramatlhodi, to look at plans prevent job cuts, such as the relocation of
excess mine workers and the retraining of other workers. But unions say the task team that must
carry out these plans has not met at all since it was appointed last year (23 Feb 2016). City Press.
Read De Lange’s report in Afrikaans at Netwerk24.
It was reported that the number of miners who have lost their jobs, or face the prospect of losing
their jobs, stands at about 32,000 due to the drop in metal prices to long-term lows and because of
domestic economic turmoil. Mineral resources minister Mosebenzi Zwane said that there had been
further job losses since last year when around 23,000 miners were retrenched as companies
grappled with a low-price environment and dwindling demand Minister Zwane said that the DMR
would be engaging with stakeholders to mitigate the job losses through a number of initiatives
including the re-skilling of workers, counselling and transferring workers from operations which
were not doing well to others (29 Jan 2016). Business Report. Read too, Kumba to slash jobs as
changes fail to take off, at BDLive.
SECTOR
MINING
COMPANY
NO. OF WORKERS
AFFECTED
DATE OF
COMMENTS/REFERENCES
INFORMATION
African Rainbow
Minerals: Black Rock
Possible
retrenchments as
part of cost cutting
4 Sept 2015
Report by Mpho Sibanyoni in full on
page 24 of Sowetan of 4 September
2015
Amplats: Twickenham,
Union, Rustenburg
and others
Up to 2000 jobs
affected in
Twickenham and
Union mines
29 Feb 2016
Report in full at Mining Weekly. See
too, Up to 2,000 Amplats jobs on the
line, at Business Report
Total of 2720
workers in Amplats
mines
09 Dec 2015
Anglo’s exit plan - City Press
4
In Sept it was
reported that 800
contractors would
be retrenched from
Capital
Development
Services, a
subsidiary of
Amplats
Anglo American:
Bokoni Mine
Job cuts announced
in Sept 2015
11 Sept 2015
Report by Chané van der Merwe in full at
The Citizen
17 Sept 2015
Based on reports at Miningmx and
Fin24. Read the company’s statement at
Sharenet
Potentially 2500
people affected
09 Dec 2015
Twickenham and
Union
2000
29 Feb 2016
Read this report in full at Mining
Weekly. See too, Up to 2,000 Amplats
jobs on the line, at Business Report
ASA Metals: Dilokong
Chrome Mines
750 mentioned but
up to 2000 could be
affected
13 and 14 Jan
2016
Business Report
Theto Mahlakoana at Business Report.
See too, NUM to fight 700 chrome mine
layoffs, at BDLive. The NUM’s press
statement is at Cosatu Today
Aveng Moolmans iron
ore mine
600
29 Jan 2016
Netwerk24. Read Solidarity’s press
statement at Solidarity online
Chamber of Mines
7 employees,
representing 10% of
total staff
complement
14 Aug 2015
SA Labour News
De Beers
366
16 Feb 2016
Zandi Shabalala is at Mineweb. Read
Solidarity’s press statement on this
matter at Solidarity online. And Business
Report
152 at Venetia and
214 at other mines
Allan Seccombe : BDLive
De Beers: Venetia
152
18 Feb 2016
Miningmx. Read the NUM’s press
statement at Cosatu Today. Read De
Beers’ press statement at Mineweb
Sale of De Beers
Kimberley Mines to
Ekapa Minerals
Section 197 applies,
therefore no
retrenchments
22 Jan 2016
MWO
The New Age
5
Eskom
Eskom denies NUM
accusation of
retrenchment of
331 workers
15 Oct 2015
A short report is at Engineering News
Exxaro : Arnot Coal
Mine
1800, but still in
discussion
4 March 2016
Mining Weekly. Read too, Exxaro,
Eskom head for arbitration over Arnot
coal mine closure, at Mining Weekly.
And also, Eskom gives short shrift to
Exxaro’s Arnot proposal, at Miningmx.
As well as, Exxaro en Eskom haaks met
1,800 poste in gedrang, at Netwerk24
Glencore:
340 jobs in SA
1 Oct 2015
Report by Andre Janse van Vuuren in full
at TimesLive
240 jobs at its South
Witbank coal mine
in Mpumalanga.
100 jobs at Witcons.
Potentially 1000
jobs at Eland
platinum mine
of the 1,067
employees
expected to be
retrenched, 359
were retrenched,
267 opted for
voluntary severance
packages and 86
were redeployed to
other Glencore
operations
Impala Platinum
60 top skilled
employees
1600 workers to be
retrenched at
Rustenburg
operations
International Ferro
Metals (IFM)
Possibility of
retrenchment if it
shuts operations
resulting from
business rescue
Business Report. Read the NUM’s press
statement at Cosatu Today
21 Sept 2015
Read this report by Mpho Sibanyoni in
full on page 14 of Sowetan of 21
September 2015
4 Sept 2015
18 Sept 2015
27 Aug 2015
Report by Mpho Sibanyoni in full on
page 24 of Sowetan of 4 September
2015
Report by Andre Janse van Vuuren at
Business Report
Report by Allan Seccombe in full at
BDLive. Read IFM’s press statement at
IFM online
6
Khumani iron ore
mine
250
29 Jan 2016
Netwerk24. Read Solidarity’s press
statement at Solidarity online
Kumba Iron Ore:
6300 in total
15 Feb 2016
City Press. Read too, Kumba sheds jobs
as revenue falls, at SowetanLive. Read
Kumba’s press statement at Sharenet
Also Mineweb
Kumba Iron Ore:
Sishen
2633 permanent
and 1300
contractor posts
15 Feb 2016
BDLive. Read Kumba’s press statement
at Sharenet
Also Business Report
Kumba Iron Ore:
Thabazimbi
800
15 Feb 2016
City Press. Read too, Kumba sheds jobs
as revenue falls, at SowetanLive.
Lonmin
5 108, comprised of
2 979 Lonmin
employees and
2 129 contract
workers.
3 March 2016
Dineo Faku at Business Report. See too,
Only 75 out of 6,693 Lonmin employees
to lose their jobs, says Amcu, at EWN .
Also, Zintle Mahlati at Business Report
5 183 fewer
employees lost
their jobs than the
6000 that was
initially targeted in
July 2015.
5108 workers left
voluntarily. 1297
were redeployed to
other mines. 75
people received
retrenchment
letters.
Msobo Coal
Unclear how many
affected
13 Jan 2016
Employees
issued with
letters of
termination on
23 Nov 2015
Business Report. Read the NUM’s press
statement at Cosatu Today. And Fin24
Optimum Coal mine
acquired by Tegeta
Exploration
Commitment to not
retrench.
23 Feb 2016
Tegeta-Optimum merger approved with
retrenchment condition,Fin24
- Guptas mag niemand by Optimum
afdank, at Netwerk24
Earlier in 2015
Glencore
7
retrenched 630
workers.
Rockwell Diamonds
Closure of Jhb office
Uncertain how
many employees
affected.
19 Jan 2016
Miningmx
Sibanye Gold
Acquisition of
Aquarius Platinum
to not result in job
cuts
7 Oct 2015
Netwerk24. See too, Sibanye Gold
doesn’t plan job cuts after offer to buy
Aquarius, at SowetanLive
Samancor
Warning of job cuts
after announcing
earlier in Nov 2015
that major
restructuring could
affect 500
employees.
8 Feb
MWO
4 Nov 2015
Report in full at Mining Weekly Online.
Read Solidarity’s press statement at
Solidarity online
South32 – Manganese
mine
620
4 and 5 Feb
2016
eNCA and BDLive
Tau iron ore
175
29 Jan 2016
Netwerk24. Read Solidarity’s press
statement at Solidarity online
Trans Hex: Baken and
Bloeddrif assets
125 voluntary
retrenchments
22 Feb 2016
BDLive. See too, Trans Hex laat gaan
125 werkers, at Netwerk24
Steel Industry
Call by Seifsa to impose import tariffs to halt steel retrenchments (12 Aug 2015)
The Steel and Engineering Industries Federation of SA (Seifsa), which represents companies in the steel and engineering
sectors, is questioning why the government is not imposing tariffs to stop the threat of job losses in the industry. "We’re also
asking ourselves why it is that this democratically elected government that is accountable to the people of SA — who stand to
lose more jobs — does not act with greater speed to impose tariffs," asked Seifsa CE Kaizer Nyatsumba on the sidelines of a
closed meeting where fabricators and labour organisations were seeking to thrash out a solution to stem job losses in the
steel industry. The meeting, called by the National Union of Metalworkers of SA (Numsa), comprised chief executives from
ArcelorMittal SA, Evraz Highveld Steel, Scaw Metals Group, Macsteel and Seifsa. The parties were joined by labour unions
Solidarity and the United Association of SA (Uasa). The meeting is likely to continue on Wednesday. Possible retrenchments
in the industry could result in about 5,000 people losing their jobs.
Read this report by Penelope Mashego in full at BDLive. See too, Steel companies and Numsa mum over restructuring
meeting, at EWN. And also, Job losses in mining and steel sectors a big threat to economy: Zuma, at SABC News
8
Trade unions threaten protest action over looming job cuts in steel sector (13 Aug 2015)
Engineering News reports that the National Union of Metalworkers of SA (Numsa), Solidarity and the United Association of SA
(Uasa) on Wednesday threatened to start mass pickets and demonstrations to defend jobs and highlight “the brutal plight”
faced by workers in the steel sector. This followed a meeting on Tuesday with steel industry CEOs and employer bodies, led
by Numsa general secretary Irvin Jim, where the “looming jobs loss bloodbath in this strategic sector of our economy” was
discussed. The unions said those present agreed that the pending job losses would have a “devastating impact” on local
communities, as close to 75% of working class and poor households in the Vaal and Newcastle areas depended on the steel
industry for their survival and livelihoods. The unions also noted that the looming job losses in the steel industry were going
to be far greater than those of the mining industry. They further highlighted that the meeting was open and frank and that
they appreciated the fruitful deliberations and joint commitments to save jobs. A task team, comprising representatives from
labour and industry, has been set up to develop a detailed submission and concrete proposals to be tabled with government.
Read this report in full at Engineering News. Read the unions’ press statement at Numsa online
Government to meet steel industry players over job losses again in next two weeks (9 Sept 2015)
Mail & Guardian reports that as players in the steel sector scramble to prevent a total shutdown of the industry within the
next six months, a task team formed to curb job losses in the sector is expected to meet with government in the next two
weeks. It consists of unions and steelmakers and was formed in August. It is estimated that 190,000 jobs are on the line
across the sector, with the imminent closure of all major steel producers. The first meeting between the task team and
government took place on 18 August, where government committed to ensuring that applications for tariffs on steel imports
would be considered. Report by Sarah Evans in full at Mail & Guardian
STEEL
ArcelorMittal SA
Vereeniging Works.
400 jobs
Evraz Highveld Steel
An announcement
in July 2015 of 1089
employees to be
retrenched.
1 Sept 2015
Report in full at Miningmx. Read too,
ArcelorMittal SA steel mills to close as
industry crisis bites, at BDLive, MWO,
Fin24, Netwerk24
Report by Mark Allix in full at BDLive
In Aug 2015, 1100
employees were
served with Section
189 notices
14 Aug 2015
1 800 issued with
notices, but
potentially 2187
affected because
the Department of
Labour suspended
the payment of a
training allowance
on behalf of some
employees, and the
IDC failed to
17 Feb 2016
report by Penelope Mashego at BDLive.
Read Solidarity’s press statement at
Polity.org.za
Report by Andre Janse van Vuuren in
Fin24. Read Evraz Highveld’s JSE
statement at Sharenet
Report by Mark Allix in BDLive. Read the
unions’ joint statement at Politicsweb
R
F
s
R
u
9
provide additional
funding of R150m
that was critical for
the continuation of
Highveld as a going
concern.
Scaw Metals
Up to 1000 workers
issued with Section
189 notices
14 Aug 2015
Report by Penelope Mashego at BDLive.
Read Solidarity’s press statement at
Polity.org.za
SECTORS OTHER THAN MINING: GENERAL STATEMENTS
Job creation set to remain under pressure in second quarter (8 March 2016)
It is reported that job creation in agriculture, manufacturing, and the wholesale and retail trade will remain under pressure in
the second quarter, as employers look to contain costs and keep their operations afloat. The job-creation sentiment is
reflected in the results of the Manpower employment outlook report released on 7 March 2016. However, the survey results
show that employers in the electricity, gas and water-supply sector, as well as finance, insurance, real estate and business
services are likely to generate employment. A total 13% out of 752 respondents plan to hire more people, 8% are looking at
retrenching staff, while the rest will keep numbers unchanged.
Read this report by Ntsakisi Maswanganyi in full at BDLive. See too, Werkgewers traag om meer mense aan te stel, at
Netwerk24
Small businesses ‘bleeding jobs’, says CCMA (17 Nov 2015)
According to the Commission for Conciliation, Mediation and Arbitration (CCMA) the small business sector has experienced a
major increase in retrenchment cases in the past two years. The current picture of the sector “bleeding jobs” due to tough
economic conditions does not bode well for the country, especially given targets of creating 11 million jobs by 2030 as set in
the National Development Plan (NDP). In terms of the targets, small businesses have to contribute roughly 800,000 jobs per
year until 2030. The sector is currently contributing 55% to domestic GDP growth. The CCMA has reported a rise in small
scale retrenchments of 13,020 in the past two years, while a mammoth 40% rise in retrenchment cases was seen in the first
quarter of the year.
Report in full at The New Age
Job losses mount as tough economic conditions bite (30 Sept 2015)
BDLIve reports that the formal sector shed a staggering 161,000 jobs between the second quarter of last year and the second
quarter of this year, indicating how tough economic conditions are starting to bite. In the second quarter of this year 1,000
jobs were lost when the economy contracted 1.3%, Statistics SA’s quarterly employment statistics survey showed on
Tuesday. "These job losses simply mean that our targets in the National Development Plan to reduce unemployment to 14%
by 2020 are becoming more difficult to achieve," Nedbank economist Isaac Matshego said. But Stanlib chief economist Kevin
Lings said the figures should be viewed with caution as they were "heavily distorted" by the fact that the government
increased employment by 100,000 temporary jobs in the second quarter of last year due to elections in May. Investec
economist Kamilla Kaplan said the large number of resignations by public servants due to uncertainty over pension reforms
could also have affected the numbers. Research has shown that half of the workers employed through labour brokers lost
their jobs, while a far smaller portion got permanent jobs after amendments to the Labour Relations Act restricted the
employment of temporary workers. Formal sector jobs are likely to remain under pressure as the government will not hire as
10
many people as it has in the past as it tries to curb its wage bill.
Read this report by Ntsakisi Maswanganyi in full at BDLive
Trade union Solidarity puts retrenchments at 62,000 this year (19 Aug 2015)
Moneyweb reports that trade union Solidarity union estimates conservatively that retrenchments will cost 62,000 people
their jobs in 2015. With this in mind, the union on Tuesday announced a plan to mitigate the impact of retrenchments on its
members. Research by the Solidarity Research Institute (SNI), based on media reports and internal research including a
member survey, an analysis of the number of requests made to the unions for retrenchment advice or assistance and the
Solidarity ETM Labour Market Index, suggests that about 220 employers have planned mass retrenchments this year. Looking
at media reports alone, there are 45,000 jobs that have been impacted by retrenchments at 58 companies, with the majority
of cuts in the mining sector (19,807), followed by the telecoms sector (9,595), the SA Post Office (5,065), and the steel and
metals sector (5,059). Downsizing plans at ArcelorMittal SA, Lonmin and Telkom alone will affect 15,000 workers. “If you
take the remaining sources of our research into account, there are another 160 or so companies that would add about 16,500
retrenchments that are not reported in the media, so it’s much closer to 62,000,” said Solidarity deputy head Johan
Kruger. SNI head Piet le Roux said the situation was likely to get worse before it became better. He also noted that the
union’s call centre had received 80% more retrenchment-related calls in June and July this year than it had a year prior.
Read this report by Sungula Nkabinde in full at Moneyweb. Read too, Afleggingskrisis: 61,500 reeds vanjaar afgedank, ergste
kom nog: Solidariteit, at Netwerk24. Access the Solidarity retrenchment report at Solidarity online
CCMA springs into action to stem wave of retrenchments (19 Aug 2015)
Business Report writes that there has been an upsurge of retrenchment notices affecting thousands of workers, 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 large scale referrals received so far
and equals 40% of the total referrals received last year. A job insecurity crisis committee and task team have been
established to ensure that there was sufficient capacity to implement an action plan. Social partners would be engaged,
focusing on establishing the technical aspects of businesses in distress and job insecurity. This would result in a job saving
indaba. CCMA director Nerine Kahn said the job security strategy was underpinned by three principles, namely, “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 indicated that SA 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. A further 160 other companies, where Solidarity members were employed, were
undergoing similar processes.
Read this report by Wiseman Khuzwayo in full at Business Report
AGRICULTURE
Nationwide
37 000
26 Feb 2016
BDLive. Read too, Drought beginning to
impact on unemployment, at
SowetanLive
Meer as 22 000 verloor werk, at
Netwerk24
CLOTHING
Edcon Holdings
Up to 2000
29 Feb and 9
Feb 2016
Business Report. See too, Edcon to cut
some of its 3,000 head office jobs, at
11
BDLive. And also, Edcon begin met nog
afleggings, at Netwerk24
Fin24
CONSTRUCTION
INDUSTRY
Aveng
Job losses as a
result of a sharp
decline in profits
but numbers in SA
uncertain.
19 Aug 2015
Report in full at Engineering News.
Read too, Bleeding Aveng warns of
further job cuts, at BDLive
Group 5
Further
retrenchments
affecting
permanent staff at
head office and the
manufacturing
cluster
20 Nov 2015
report by Roy Cokayne in full on page 20
of Business Report of 20 November 2015
2 400 employees
retrenched
18 Aug 2015
Report in full at Engineering News.
Read too, Group Five cites cutbacks for
woes, BDLive
FINANCE
Banks nationwide
Uncertain
29 Jan 2016
Report by Renee Bonorchis in full at
Business Report
FISHERIES
Oceana Group
98 jobs saved as the
company decides to
stay operational.
Production days to
double to increase
turnover
4 Nov 2015
Report in full at eNCA. See too, Oceana
to keep doors open, Fawu pleased, at
EWN. And also, Oceana to keep 'smelly'
fishmeal factory open, at Fin24
FOOD AND
BEVERAGE
SABMiller merger
Uncertain
3 March 2016
Business Report
Also page 16 of Sunday Times Business
Times of 20 December 2015
FURNITURE
JD Group
4110
22 Feb 2016
Business Report. Read Saccawu’s press
statement on this matter at Cosatu
Today. See too, JD Group to cut more
than 4,000 jobs, at BDLive
12
HOSPITALITY
Birchwood Hotel
50 of 139 workers
retrenched but later
re-instated and to
resume duties in
Jan 2016
17 Nov 2015
Read the report by Itumeleng Mafisa on
page 3 of The New Age of 17 November
2015
LEGISLATURE
Northern Cape
Legislature
28 jobs
11 Jan 2016
page 1 of The New Age of 11 January
2016
MEDICAL
Government hospitals
Freezing of
physician and
nursing posts
9 Feb 2016
The New Age
Treatment Action
Campaign
40% job cuts
29 Feb 2016
Saturday Star
Scrap Metal recyclers
– proposed law on
exports
Up to 400 000
informal workers
23 Feb 2016
Business Report. See too, 255,000 jobs
on the line, on page 1 of The New Age of
23 February 2016
METAL
TimesLive
T
OIL & GAS
PetroSA
Sasol
The company to
offer voluntary
severance
packages. Chemical
and energy union
Ceppwawu said the
packages offered
amounted to two
weeks’ pay for each
year worked.
Employees were
said to be unhappy
with the deal.
28 Oct 2015
report in full at Fin24. See too, PetroSA
offers voluntary severance packages
amid cost-cutting drive, at Engineering
News
2 Nov 2015
Read this City Press report by Tina
Weavind in full at Fin24. Read too,
Economist urges PetroSA employees to
get out while they can, at EWN
29 Oct 2015
This short report is at EWN
1 000
8 Sept 2015
Moneyweb
13
SANDF
SANDF vehicle
maintenance to be
outsourced
Uncertain
6 Jan 2016
Engineering News. Read Solidarity’s
press statement at Solidarity online
SPORT
Mamelodi Sundowns
Some of its players
to be retrenched in
an effort to cut
costs
4 Sept 2015
SowetanLive. See too, Mamelodi
Sundowns change their strategy, at
Kickoff
STATE:
Government cost
cutting measures
Possibility of
reducing staff count
4 Sept 2015
Report by Linda Ensor in full at BDLive
Telecoms Sector: General
19 Aug 2015
- Jobs bloodbath in telecoms, at TechCentral
- 10,000 retrenchments in SA telecoms sector, at BusinessTech
TELECOMS
Altech Autopage
500
4 Dec 2015
ITWeb
MWeb – to close its
retail stores
nationwide
Uncertain
3 March 2016
ITWeb
Telkom
Potentially up to
6000 jobs to be lost.
Retrenchment of
300 at corporate
office, and the
transfer of 254
employees to
another company in
compliance with
section 197 of the
Labour Relations
Act.
1 and 2 March
2016
Report in full at SowetanLive. Read
Cosatu’s press statement on this matter
at Cosatu Today. Also Bloomberg News.
Read too, Telkom allegedly cutting 8 000
jobs, at Moneyweb. And also, Telkom
yet to make decision on more job cuts, at
EWN. ANN7. Read too, Telkom cuts jobs
as revenue plummets, at TimesLive.
4 Nov 2015
Moneyweb. See too, Telkom betaal
duur vir afleggings, at Netwerk24
Staff to be
redeployed
Announcement in
Nov 2015 of 3 108
employees to
receive voluntary
packages.
14
Potentially 255 jobs
at stake should
WNS consolidate
Announcement of
689 voluntary
severance package
applications
received, of which
330 are early
retirement
TRANSPORT
5 Oct 2015
25 Aug 2015
report in full at Engineering News. Read
Solidarity’s press statement at
Polity.org.za
report is at BusinessTech
Barloworld Logistics
Report of reducing
28 Sept 2015
work premises from
35 to 17. Which
could potentially
affect 112 former
Telkom employees
who were
transferred there
from Telkom
according to Section
197 of Labour Act
Report in full in Afrikaans at Netwerk24.
Read Solidarity’s press statement at
Solidarity online
Proposed SAA merger
with SA Express
Uncertain
26 Feb 2016
Business Report
Passenger Rail Agency
of SA (Prasa)
Allegations of
potential
downsizing at Prasa
dismissed as
rumours.
24Aug 2015
City Press report by Xolani Mbanjwa in
full at Fin24. Read too, Prasa fires head
engineer over qualification fraud, at The
Citizen
SOCIAL PLAN
DOWNSCALING AND
RETRENCHMENT
2016
Compiled by: Gideon du Plessis
April 2016
- ii -
Table of contents
Page
SECTION 1
1
A) Introduction
1
B) Four actions of the Social Plan
1
Action 1 – Pro-active measures to prevent job-losses
1
1.1
Future Forums
1
1.2
Training needs-analysis
1
1.3
Empowerment Programmes
2
1.4
Opportunity Centre
2
1.5
Social Labour Plan Coordinator
2
Action 2 – Sound legal process and fair procedure
2
2.1
Pro-active communication
2
2.2
Legal compliance
2
2.3
Information sharing
3
2.4
Union and member communication
3
Action 3 – Alternatives to retrenchment
3
3.1
3
Alternatives to avoid retrenchment
Action 4 – Measures to mitigate the negative effects of retrenchment
5
4.1
Preferred employer actions
5
4.2
Minimum requirements
6
SECTION 2
A) Solidarity’s social responsibility and support network
7
5.1
Solidarity Helping Hand
7
5.2
Sol-Tech
7
5.3
Career Clinic
7
B) Conclusion
8
SECTION 1
A)
INTRODUCTION
The purpose of the Solidarity Social Plan in Section 1 is to provide employers with guidelines, methods
and actions to prevent retrenchments, reduce the number of employees affected by retrenchment and
minimise the negative effects of retrenchment on employees. The Plan also focuses on the legal
framework and effective communication measures to foster sound labour relations during a
retrenchment consultation process. In Section 2, the focus is placed on the social support role
Solidarity as a movement plays in the event of the retrenchment of a Solidarity member.
B)
FOUR ACTIONS OF THE SOCIAL LABOUR PLAN
In this Section, the Social Plan makes provision for four actions relating to retrenchment or
downscaling. Mechanisms are put into place under each of these four actions to assist employers,
unions, union members and non-unionised employees to deal with retrenchment-related matters. The
actions and mechanisms are described below.
ACTION 1:
PRO-ACTIVE MEASURES TO PREVENT JOB LOSSES
Solidarity’s main objective is to ensure job security and prevent any form of retrenchment. The
following four pro-active interventions should be implemented to act as a preventive measure to
minimise or prevent future job losses.
1.1
*Future Forums
A Future Forum with equal representation between employer and union representatives should be
established at each workplace to identify and analyse problems in an organisation in good time and to
manage a redundancy-related process.
The objectives of Future Forums are to:

promote ongoing discussions between Solidarity and employers about the future of the
organisation, industry, sector and/or specific workplace;

identify possible future problems that may lead to retrenchment or downscaling and act
on them;

analyse and react to risk reports;

develop turnaround or redeployment strategies to help prevent and reduce job losses;

act as an advisory committee on all matters pertaining to a retrenchment process;

ensure a fair process; conduct interviews and consult with employees regarding
possible transfers; provide advice on training and ensure that training takes place;

structure and implement proposals agreed on by both Solidarity and employers; and

provide overall management of retrenchment, downscaling and restructuring processes.
*A Future Forum can also be implemented in a non-unionised workplace consisting of employer and
employee representatives.
1.2
Training needs-analysis
A general skills audit needs to be conducted for all employees in order for skills development
programmes to be implemented prior to the retrenchment of employees.
Therefore, the continued focus on developing portable skills within the workforce throughout the
employment period will facilitate the acquisition of entrepreneurial and a range of other skills by
-2-
employees. The skills will be portable both within and external to an industry, which is of additional
value during a downscaling or retrenchment process.
Employers, through their human resources or human capital departments (or Opportunity Centre – see
below), should ensure that employees have access to accredited training and obtain certified skills.
The Department of Labour’s training-lay-off scheme, or Seta accredited training programmes, should
be implemented. Alternatively, Sol-Tech, Solidarity’s own training centre, and Akademia can also be
utilised for the development of portable skills.
1.3
Empowerment Programmes
In addition to item 1.2, ongoing training programmes have to be conducted to empower and equip
employees to start their own businesses. These entrepreneurial skills will not only allow a person to
start his/her own business, but where possible also enable a person to become a service provider or
supplier/vendor to an employer. It should also be compulsory for company service providers and
vendors to operate in a joint venture with retrenched employees.
1.4
Opportunity Centre
Where possible, an Opportunity Centre should be established. The Opportunity Centre will be
responsible for carrying out all training, outplacement, counselling and other matters linked to the
Social Plan. Where appropriate, this function can be outsourced to a specialist service provider.
1.5
Social Labour Plan Coordinator
To ensure the successful implementation and monitoring of a social plan, a managerial employee
should be appointed to coordinate and manage the various Social Plan actions and the effective
functioning of the Future Forum and Opportunity Centre.
ACTION 2:
2.1
SOUND LEGAL PROCESS AND FAIR PROCEDURE
Pro-active communication
To ensure good faith, openness and transparency, the employer should advise and consult the Future
Forum and unions represented on the Forum prior to the commencement of any formal retrenchmentrelated processes. In the absence of a representative trade union and Future Forum, briefing sessions
should be conducted with employees.
2.2
Legal compliance
Proper legal procedures and processes need to be implemented and followed in the event of
retrenchment or downscaling processes.
In this regard, the employer has to, inter alia, comply with the following:



Section 189 of the Labour Relations Act (and, where applicable, the relevant clauses in a
bargaining council collective agreement)
Code of Good Practice on Operational Requirements
Regulations passed by the Department of Labour, relevant State Departments and NEDLAC
-3-






Social Plan drafted by Solidarity
Ministerial directives
Company policies and procedures
Employment contract
Relevant charters
Section 52 of the Mineral Petroleum Resources Development Act in the mining industry
2.3
Information sharing
Total disclosure of all relevant information is key to a meaningful joint consensus-seeking consultation
process. Unions and employees who are involved in a retrenchment process should be kept informed
openly and continuously and the employer should be professional and responsible towards them
throughout the process.
Furthermore, a website or intranet-based site should be created by the employer for the placement of
all restructuring/retrenchment-related communications. A channel should also be created where
employees and employee representatives can raise questions related to the process. Where an
intranet system is not available, or employees do not have access to an intranet or computers, the
company should make use of alternative communication methods to ensure that employees are well
informed.
2.4
Union and member communication
Employers should arrange feedback sessions where Solidarity can communicate with its members on
a regular basis.
ACTION 3:
3.1
ALTERNATIVES TO RETRENCHMENT
Alternatives to avoid retrenchment
At the commencement of a retrenchment consultation process, employers should provide the required
proof that all possible measures to re-engineer the business were considered or implemented and that
retrenchment is not merely a vehicle to address other deficiencies in an organisation.
As part of the initial phase of the consultation process, the following alternatives should first be
considered and implemented to avoid retrenchment. If the employer does not agree with any of the
alternatives or regard some of them as irrelevant, the employer must state the reasons for rejecting the
alternatives.
3.1.1
First consideration (listed in no particular order)
“Quick fix”:
 Invite employees to apply for early retirement.
 Consider the impact and effect of natural attrition and a recruitment freeze.
 Offer voluntary severance packages.
Operational:
 Revise working hours.
 Implement shorter working hours (short time) or shorter working weeks.
 Revise overtime provisions and practices.
-4-
Business and organisational:
 Reduce corporate luxuries i.e. exclusive offices; nice-to-have facilities and properties;
unjustifiable corporate benefits and equipment; etc.
 Create a cost-saving culture.
 Effective policies and procedures should first be implemented if a retrenchment process is
linked to productivity-related matters (absenteeism management system, performance
management programme, etc.).
 Investigate in-sourcing (i.e. bring outsourced functions back in-house should it be more cost
effective).
 Investigate outsourcing (should it proven to be more cost effective, and guaranteed
employment of all affected employees are ensured with a reputable service provider on similar
or more favourable employment terms and conditions).
Staff planning:
 Consult with employees regarding transfers and re-deployment (even with other employers).
 Grant extended paid leave.
 Undertake the re-skilling and training of employees in order for current employees to assume
other duties and positions.
 Ensure multi-skilling of employees.
3.1.2
Second consideration (listed in no particular order)
 Negotiate a salary freeze (linked with compensation in company share options or retrenchment
moratorium, for example).
 Constrain bonuses across the board.
3.1.3
Final Consideration (listed in no particular order)
“External” downscaling:
 Downscaling of contractors and consultants (or replacing them with permanent employees)
 Reduction in temporary employees
Temporary reduction in income:
 Implement job sharing (temporary reduction in remuneration).
 Implement unpaid leave whilst maintaining the employees’ benefits and service.
 Introduce temporary lay-offs (employees to claim UIF where relevant).
 The Department of Labour’s (DOL) training-lay-off-scheme can also be implemented whereby
affected employees receive quality training paid for by the DOL whilst employees are laid off.
-5-
ACTION 4:
4.1
MEASURES TO MITIGATE THE NEGATIVE EFFECTS
OF RETRENCHMENT
Preferred employer actions
When retrenchment seems unavoidable, employers that are regarded as an employer of choice will
have their employees’ interests at heart when employees face losing their livelihood through
retrenchment, or a so-called “no fault dismissal”.
Solidarity regards the following five initiatives as actions an employer of choice will comply with:
4.1.1
Favourable retrenchment package
 Severance payment much more favourable than the minimum statutory requirement and
current practice;
 Notice payment much more favourable than the minimum statutory requirement and current
practice;
 Bonus payment, or an additional ex gratia payment; and
 Payment of benefits (i.e. medical aid contribution) for a reasonable period after retrenchment.
4.1.2
Establish and/or finalise training needs
 Employers to confirm training needs and preferences of affected employees;
 Develop a list of courses based on available opportunities;
 Consult with accredited internal and external training service providers and the Department of
Labour to conduct identified training programmes;
 Empower affected employees with non-industry specific skills; and
 Employer to fund training courses.
4.1.3
Provide suitable alternative livelihood and/or self-employment
 Develop entrepreneurial and business skills;
 Create the opportunity for retrenched employees or their family members to become service
providers to the employer, e.g. providing a gardening, cleaning or maintenance service;
 Empower retrenched employees or family members to become suppliers/vendors to the
employer;
 Employer or accredited training provider to provide training on a step-by-step guideline basis
to start one’s own business; and
 Provide an employee with “start-up” capital to establish a business and to buy tools or
equipment
4.1.4
Retrenchment delay – redundancy pool
 Redundant employees to remain on the employer’s payroll for three months after the
conclusion of the consultation process; and
 Internal and external (outplacement provider) service to look for suitable vacancies during this
period
4.1.5
Feeding schemes, or grocery vouchers (where applicable)
 Temporary feeding scheme in the event of the closure of a business unit, or operation; and
 Feeding schemes or grocery vouchers for retrenched workers and their families
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4.2
Minimum requirements
The following six actions are regarded as minimum requirements employers should adhere to:
4.2.1
Timeous payment of retrenchment packages
 Total retrenchment package to be paid to the employee prior to, or at least on, the last working
day (tax directives to be obtained timeously by employer)
 Issuing of UIF documentation, certificate of service and written reference (if requested) prior
to employees’ final working day
4.2.2
Benefit and UIF claims assistance
 Employers to liaise with Department of Labour to assist retrenched employees with the UIF
claims process and procedure;
 Employers to ensure the fast-tracking of pension or provident fund withdrawal payments; and
 Contact details of employer representative to be communicated to all retrenched employees
for all future queries.
4.2.3
Outplacement assistance
 Guidance and assistance with the drafting of a curriculum vitae (CV);
 Provide suggestions for job hunting;
 Assistance with registration as a jobseeker and distribution of CVs to recruitment agencies;
and
 Arrange and provide employee access to a career consultant.
4.2.4





4.2.5
A comprehensive human resources management system
Training of managers on how to deal with retrenchment of their own staff;
Ensure that managers fully understand the legal requirements of a retrenchment process;
Equip managers with counselling skills;
Ensure that managers are equipped to interpret the content of a severance package; and
Ensure that managers are equipped to handle the aftermath of retrenchment.
Re-employment and database of retrenched employees
 Employer to manage database of all retrenched employees;
 Retrenched employees to receive preference for future employment for a period of 24 months
from the date of termination of service; and
 Employer to liaise with Department of Labour (DOL) regarding the DOL database and
employment opportunities.
4.2.6
Provision of counselling
 Employer assistance in obtaining the following types of counselling:
 Personal trauma and emotional counselling
 Financial planning advice
 Redeployment counselling
 Managing change and becoming motivated
 Employer to liaise with the Department of Labour or any other accredited service provider for
group counselling for both retrenched employees and employees remaining in service.
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SECTION 2
A)
SOLIDARITY’S SOCIAL RESPONSIBILITY AND SUPPORT
NETWORK
Solidarity offers various support functions within the Solidarity Movement that will play a pivotal role in
ensuring that retrenched employees are supported in various ways. Below follows a breakdown of the
support role offered from within the Solidarity Movement:
5.1
Solidarity Helping Hand
Solidarity Helping Hand is Solidarity’s support organisation and through its help desk the organisation
ensures that a retrenched person in need of social support, gets in touch with the relevant welfare
organisation, receives career guidance and job placement assistance.
Solidarity Helping Hand also manages an Emergency Fund in terms of which Solidarity and Helping
Hand members who are experiencing a severe financial crisis will receive short term support.
Furthermore, essential goods are transported to informal settlements and shelters on a daily basis
through Helping Hand branches that are located in many parts of the country.
5.2
Sol-Tech and Akademia
Solidarity established its own technical training college, Sol-Tech, in 2005 and a private university
Akademia in 2012. Sol-Tech and Akademia offer a wide range of courses to Solidarity members.
Should Sol-Tech or Akademia be unable to provide training in portable skills to any of the retrenched
Solidarity members, Sol-Tech and Akademia will use their training network to source the appropriate
service provider.
5.3
Career Clinic and Solidarity Financial Services
Solidarity, in cooperation with Helping Hand and Solidarity Financial Services, established a support
service to individuals who are affected by retrenchment. In some instances, the employer will be
requested to contribute towards the costs of the service offered to retrenched Solidarity members.
Solidarity Financial Services (SFS) and Helping Hand will provide the employer’s retrenched
employees with professional advice regarding:
a. Financial Planning
Professionally qualified financial advisors from SFS will be available to assist and support
retrenched employees with advice regarding appropriate investments and the feasibility to
start a new business and retirement planning. This will especially include advice on tax
implications of various actions towards pension and provident fund pay-outs.
b. Trauma Therapy
Should the employer be willing to contribute, qualified therapists are available to assist
individuals to deal with all the emotional aspects of a retrenchment process. The therapy
will include the whole family if necessary.
c. Career Counselling
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Registered industrial psychologists and psychometrics conduct fair and reliable tests
where information is gathered and integrated to provide value-added advice to each and
every retrenched individual. The advice includes information about individual strengths,
development areas, possible and alternative career paths and a formal career
development plan, which includes the type of training needed to pursue a different career.
Individuals will be assessed according to their job and management level and their CVs
placed on the Helping Hand employment network.
d. Training and Development Opportunities
One of the outputs of the Career Counselling intervention is a formal career development
plan. In this plan and in consultation with Sol-Tech and Akademia, training interventions
will be highlighted as well as institutions where training can take place. Payment for this
training intervention will form part of the demands set by Solidarity during the retrenchment
consultation.
B)
CONCLUSION
The Social Plan developed by Solidarity is regarded as an essential guideline to employers when
dealing with matters relating to retrenchment and downscaling. The implementation of such a plan will
strengthen the social contract between the employer, employees and Solidarity.