nelsonmandelabayCity Press writes that Nelson Mandela Bay’s unemployment rate of 32% is expected to rise as four major companies are in the process of retrenching staff.  

Goodyear, SAB, Aspen Pharmacare and Educor, which together employ close to 10,000 people, have signalled possible job cuts.  Business Chamber CEO Nomkhita Mona said they were “deeply concerned” about any potential job losses in the metro as unemployment was already “alarmingly high”.  “Nelson Mandela Bay has been plagued by political instability which has paralysed the region. The lack of leadership and chaos brought about by the ineffective coalition government has brought the city to a standstill.  Locally, there has been hardly any economic activity as the basics have largely not been in place,” said Mona.  Meantime, Goodyear has written to metalworkers’ union Numsa notifying it of pending retrenchments.  According to Numsa’s Mphumzi Maqungo, the company intends to retrench about 200 workers.  Numsa is still negotiating with management.  The Food and Allied Workers Union (Fawu), which represents the SAB employees, said retrenchment negotiations were still ongoing at the CCMA.  The union’s Mayoyo Mngomezulu said they did not know how many workers would be affected:  “The company first said 500, then it was 300 and now we are hearing 100.”  Aspen is also still negotiating with the workers’ union, but apparently the pharmaceutical manufacturer intends to retrench about 500 workers.  It has also been reported that Educor intends to retrench more than 700 workers.


Get other news reports at the SA Labour News home page