Thousands of jobs are expected to be lost in the manufacturing sector as the slowdown in the economy continues.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has warned that around 500,000 jobs could be shed this year as a result of the economic downturn, high salary and electricity costs.
Last year, the sector lost almost 10,000 jobs.
Seifsa CEO, Kaizer Nyatsumba, says if the status quo does not change, the sector will continue to bleed.
He was speaking to the SABC at a Metals and Engineering Indaba in Johannesburg.
“There have been massive retrenchments. You heard how some of the companies talk about how they had to handle this, especially where they had voluntary retrenchments packages. But others have had to embark on Section 87 in terms of the labour relations act to implement retrenchment.”
Nyatsumba adds: “Quite a number of people have lost their jobs and there are companies still that are not in a secure space and continue to consider all the options. So it’s not in the interest of companies, it isn’t in labours interest and it isn’t in government interest for the army of the unemployed to be swelled.
Source: Nam News Network