Today's Labour News

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ProductivitySABusinessLive reports that Productivity SA wants the Labour Relations Act’s (LRA's) section 189 amended to compel companies in distress to report retrenchment plans to the Department of Labour (DOL).  

The entity, which is responsible for promoting employment growth and productivity, says it has been unable to save jobs as it is not always consulted by businesses.  CEO Mothunye Mothiba explained:  "One instrument we looked at is that the act should be amended to ensure that companies are compelled to report to the department to say we are going to retrench.  If we achieve that it will make it easy for Productivity SA to get this information right on the spot and to be able to intervene."  The LRA requires businesses to consult employees, workplace forums and trade unions about their intention to retrench.  Yet in most cases, even if companies had reached out to Productivity SA, the likelihood of intervention would have been low as the organisation was facing financial difficulties that prevented it from fully delivering on its mandate.

  • Read this report by Theto Mahlakoana in full at BusinessLive

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