Today's Labour News

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ProductivitySABusinessLive reports that Productivity SA, the Department of Labour entity responsible for helping struggling companies reverse their fortunes, has found itself in a financial crisis that could force it to retrench staff.  

The agency, whose mandate is to promote employment growth and productivity, says its turnaround solutions programme initiative for job retention faces collapse should its cash crunch persist.  Staff have already approached the SA Parastatal and Tertiary Institutions Union (Saptu) amid indications that the entity will not be able to pay March salaries.  The financial crisis stems from the failure by the Unemployment Insurance Fund (UIF), which is a major financial contributor, to transfer R59m it had committed to Productivity SA.  The reason the UIF decided to withhold funds is apparently that the agency had misspent money allocated to it in the past.  This week the Department of Labour transferred R9.7m to help Productivity SA cover its operational costs.  The labour minister’s spokesman, Sthembele Tshwete, said the department would ensure no retrenchments took place at the agency.

  • Read this report by Theto Mahlakoana in full at BusinessLive


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