Economic policy results in retrenchment bloodbath in manufacturing industry
20 January 2020
Solidarity admonishes the government to urgently re-evaluate the existing economic policies that suppress the manufacturing industry in order to avert job losses.
“Although companies cite the many challenges experienced in local and international markets as reasons for retrenchments, they also consistently argue that more competitive electricity and transport tariffs are needed to be able to compete with international competitors. The government makes it impossible for companies to compete internationally because of its role in increased productions costs, the erratic electricity supply and increases in electricity tariffs, which are the main reasons for the retrenchments,” said Willie Venter, deputy general secretary of metal and engineering at Solidarity.
After a disastrous 2019 in the manufacturing industry during which more than 7 000 retrenchments took place, the retrenchment bloodbath continues with Samancor Chrome and Glencore Alloys both announcing on 17 January 2020 that they will be laying off 600 and 665 employees respectively.
Solidarity will assist its members during the retrenchment process. “The government must take note of the umpteenth indicator that the contraction of the manufacturing industry is continuing, and that an urgent re-evaluation of the existing economic policy is needed to prevent further job losses,” Venter warned.
Consultation dates with both Samancor and Glencor will be confirmed. “Solidarity will do everything in its power to ensure that the interests of our members are protected, and the impact of the retrenchments are minimised as much as possible. After the retrenchment “bloodbath” in 2019, with retrenchments in many well-known companies in the South African manufacturing industry resulting in thousands of workers being unemployed, the latest announcements by Samancor and Glencor predict nothing good for what is expected to be a very difficult 2020,” Venter concluded.
Issued by Willie Venter, Deputy General Secretary: Mining and Engineering, Solidarity, 20 January 2020
