EFF statement on the South African Presidency’s request to businesses for a delay in retrenchments

10 January 2024

The Economic Freedom Fighters (EFF) has taken note of the request by the South African Presidency to major industries to delay retrenchments, which are on the horizon primarily due to the ongoing energy crisis, a collapsed logistics infrastructure and rising levels of crime that affect businesses.

This request, which was made by the SA Presidency's Project Management Office, comes on the backdrop of a jobs-bloodbath, which will see major industries in steel manufacturing, mining and telecommunications retrench thousands of workers and worsen the unemployment crisis in our country.

As things stand, 11.7 million people who are willing and able to work, are currently on the outskirts of the economy and unemployed. The mismanagement of ESKOM and the crippling electricity crisis, the collapse of our railways which ought to be the heartbeat of logistics for all industry in South Africa, and the rampant levels of crime and corruption has created an environment where these numbers are set to increase, all at the behest of the ruling party, the ANC.

Currently, steel manufacturer Arcelomittal has resolved to close its operations in Newcastle in KwaZulu-Natal and Vereeniging in Gauteng, which will result in the retrenchment of 3 500 workers.

Telecommunications giant Telkom intends to retrench 15% of its work force, citing a difficult operational environment due to loadshedding. Its counter-part, MTN South Africa announced in November 2023 that it will be issuing voluntary severance packages and voluntary early retirement packages to cut its staff.

Mining companies such as Anglo-American Platinum, Wesizwe Platinum, Impala Platinum and Sibanye Stillwater have all said that they intend to retrench workers, and this could result in the loss of more than 10 000 jobs by the end of January 2024.

The EFF wishes to assure not only businesses but the people of South Africa that the requested delay in retrenchments has nothing to do with the development or implementation of a plan to make business operations in South Africa less hostile, but it is a request rooted in electioneering and desperation. It is nothing but a delay tactic, that seeks to postpone retrenchments until after elections, to avoid the impact they may have on the ANC's prospects at the polls.

The ruling party has no believable or verifiable plan to end the energy crisis, to fix railway infrastructure or to curb crime and corruption. The people of South Africa must know that should they not remove the ANC at the polls in the Provincial and National Elections in 2024, then these retrenchments will be implemented immediately after election day.

The request by the South African Presidency is insincere and can be read as purely based on protecting the election interests of the ANC, because as the South African Presidency requests a delay from big-businesses on retrenchments, they are intending to retrench 6 000 workers at the South African Post Office (SAPO) themselves.

We call on the people of South Africa to go out in their numbers and register to vote, in order for jobs to be protected and for a government that has an interest in ending the massive levels of unemployment to be elected.

Let us all visit our voting stations on the 3rd and 4th of February 2024 on Voter Registration Weekend and Register To Vote EFF, or alternatively visit the IEC website and Register To Vote, and put an end to the jobs bloodbath in South Africa!

Issued by Sinawo Thambo, National Spokesperson, EFF, 10 January 2024