Govt alarmed by mass retrenchments amid country's economic challenges

Wave of layoffs sweeps through the country as 140 000 jobs lost in the three months to June

- SIPHELELE DLUDLA

THE government has expressed deep concern over the implications of mass job cuts on the economy following retrenchment notices by a number of multinational corporations.

Last week, Glencore Operations South Africa revealed its intention to retrench employees at its Rustenburg ferrochrome smelter and vanadium operations, citing insufficient electricity supply and a general “lack of sustainable industry solutions.”

Companies who are considered intensive energy users have already sounded the alarm that the escalating costs of electricity could exacerbate job losses.

Similarly, ArcelorMittal South Africa announced preparations to close its long steel mills resulting in the loss of over 4 000 jobs, attributing its plight to delays in addressing structural problems that have plagued the firm and broader industry.

Ford South Africa also joined the ranks, notifying of impending job losses for more than 470 employees at its Silverton vehicle factory and Struandale engine factory, driven by a need to realign production capacities with fluctuating market demands.

This wave of layoffs sweeping through the country and impacting thousands of employees comes as 140 000 jobs were lost in the three months to June, raising the official unemployment rate by 0.3 of a percentage point from 32.9% to 33.2%.