Today's Labour News

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edconANA reports that according to the SA Federation of Trade Unions (Saftu), the crisis facing retail giant Edcon Holdings shows that the presidential Jobs Summit that was meant to cushion SA’s rising unemployment was a sham.  

The union federation said in a statement on Sunday:  ''Saftu is appalled at the prospect of the imminent liquidation of Edcon, which could lead to the loss of 140,000 jobs, 40,000 employed directly and 100,000 indirectly.  It would be the single biggest loss of jobs in the country’s history, the country that already has the world’s sixth highest rate of unemployment could well move up to first place.  With the impact on all those dependent of the workers’ income, it would mean over a million more South Africans being plunged into deep poverty.  This collapse of Edcon reinforces Saftu’s view that the summit was a sham.''  Edcon Holdings owns Edgars, Jet and CNA.  A Sunday Times report on Sunday indicated that Edcon had sent out a letter to its 31 biggest landlords asking for a two-year 41% "rent holiday" in exchange for a 5% stake in the business in a bid to stave off liquidation and the loss of up to 140,000 jobs.  But Edcon CE Grant Pattison slammed the report as "irresponsible and sensationalist reporting", saying that the group was close to a deal to fix the business.

  • Read the original of the report on this story in full at Business Report
  • Read too, A deal is imminent, says Edcon CEO - refuting fears of business collapse, at TimesLive
  • Read Saftu’s press statement at Saftu News

Get other news reports at the SA Labour News home page