Today's Labour News

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AlexanderForbesBusiness Times reports that Alexander Forbes (AF) believes SA has seen the last of large-scale corporate retrenchments due to the pandemic, but the expected gradual recovery of businesses means those who lost their jobs are being forced to cash in their pensions while they hunt for work in a sluggish economy.

CEO Dawie de Villiers said last week that one of the negatives of the large-scale retrenchments experienced over the past 20 months was that most of those in the middle-to-lower living standards measures groupings who had lost their jobs had “tended to withdraw all their cash and not preserve any”. De Villiers added that of AF’s 900,000 client base, it had seen about 35,000 retrenchments since the pandemic began in March last year, and “north of 80%” cashed in their pensions. “The economy is going to take time to recover and while companies aren’t retrenching any more, they’re not hiring everybody back at the same rate. It’s a new base and it’s a lower base and companies are hiring at a slower pace. It is going to be tough for those people to get jobs, unless the economy gets kick-started. That’s why it’s so key to grow the economy and create jobs. Without the economy growing and businesses being able to operate, there are no new jobs. So those people will have to live off their cash for a long time,” De Villiers commented. Explaining why the retrenchment numbers have dropped off in AF’s client base even as the unemployment rate has risen to 34.9%, De Villiers said a lot of the group’s clients were big corporations that had already undertaken retrenchments in the first year of the pandemic.

  • Read the full original of the report in the above regard by Nick Wilson at BusinessLive (subscriber access only)

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