The National Union of Metalworkers of South Africa (Numsa) has called on government to move swiftly to convene an urgent meeting with the social partners to deal with the jobs crisis in the country.
Numsa maintains that the macro and micro economic policies championed by the African National Congress are directly responsible for the unemployment rate of 29%.
However, one of the glaring challenges is the protracted investment strike that the private sector has embarked on over the past two decades, the union says.
This, coupled with government’s neoliberal agenda, is responsible for destroying jobs and deindustrialising the country, Numsa argues.
Moreover, Numsa says it is dismayed by companies that retrench workers in efforts to restructure and reorganise. “To remain compliant with the Labour Relations Act, companies cite operational reasons, but this tactic of retrenchment has become a device that employers use to lay off workers, purely to strengthen their balance sheets.”
Numsa says there is public acknowledgement of corruption in the public sector, but not in the private sector.
“We are witnessing corruption from big to small companies and across industries, where it has become easy for the owners of these businesses and shareholders to pay themselves exorbitant bonuses, owners taking out huge loans and then they file for business rescue,” the union says.
Numsa points out that an “overwhelming” number of companies are issuing Section 189 notices for retrenchments and restructuring, which will have a devastating impact on workers and surrounding communities.
These companies include ArcelorMittal South Africa, Hulamin, Metso, Real Tree, Group 5 Pipes, Hall Longmore, Tube City, Scholtz Industrial, Trent Bridge Engineering, Krupp Engineering, Super Care, Light Innovation, Continental Tyres and Welfit Oddy.
Numsa highlights that the privatisation of State-owned entities will also destroy jobs.
The union says Eskom’s unbundling and full implementation of the renewable energy programme will destroy 7 000 jobs, with around 100 000 jobs to be lost if all the coal-fired power stations in Mpumalanga are closed down.
Against this background, Numsa calls on the Presidency to convene all trade union federations, unions and society to find solutions in protecting and creating jobs.