Retrenchments increase under lockdown

Letaba Herald asked the Commission for Conciliation, Mediation and Arbitration (CCMA) how Limpopo has done when it comes to retrenchments under lockdown.

Pre-lockdown there were only 183 retrenchments due to operational reasons and from April until September there has been a total of 823 retrenchments.

“Individual retrenchment cases were marginally lower prior to the lockdown. Owing to the lockdown April and May witnessed fewer cases but from June onwards witnessed a substantial increase in these matter and number of employees retrenched primarily in small to micro and medium enterprises/businesses,” said acting CCMA director, Marius Kotze.

He said large scale retrenchment facilitation trends show minimal retrenchment activity for the period January to March.

“Similarly, April and May were relatively quiet considering business closure (non-essential) for the period of the lockdown. As we moved to lifting restrictions and companies weighed up the costs of resuming operations, we have witnessed a spike in retrenchment activity and therefore an increase in the numbers of employees who may be affected by retrenchment. Note that the numbers of workers affected generally covers the entire workforce but actual retrenchments will be considerably lower than the number affected as the CCMA has a dedicated focus to saving jobs.”

Kotze said a large-scale retrenchment facilitation process usually refers to companies that employ 50 employees or more and seek to retrench at least 10 percent or more of the employees.

“There is a varying scale that is prescribed in the Labour Relations Act and based on the numbers, determines whether it qualifies as a large-scale retrenchment process. Large scale retrenchment processes may either be facilitated through the CCMA upon request and in compliance with the criteria or the process may be attended to internally by consulting parties.

The period for facilitation of a large-scale retrenchment from the date the S189 (3) notice is issued is within 60 days or over four meetings that may be extended in order to continue consultations with an overriding aim to save jobs, seek alternatives and mitigate the potential consequences of retrenchment.”

Also read: Silonque residents demand a better road

He said a small scale retrenchment process involves more often than not smaller workplaces where companies seek to retrench any number of employees less than 50 employees.

“This process is generally dealt with internally whereby consultations or discussions occur between management and employees identified for retrenchment. There is no limitation on the period for consultation and depends on the parties and opportunity for meaningful consultation,” he said.

Kotze said this generally involves a discussion on the reason (rationale) for retrenchment, measures considered to avoid or minimise retrenchment and alternatives explored and if retrenchment cannot be avoided severance packages and any support that could be offered to employees.

Also read: Ndabeni-Abrahams promises digital training to Limpopo youth

“The CCMA does not get involved in this process except where the retrenchment has occurred and the retrenched employee/employees refers the matter to the CCMA as an unfair retrenchment dispute. Small-scale retrenchments generally occurs in SMMEs and unfortunately the CCMA does not have the opportunity to participate in the consultation process in order to assist the parties.”