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Newsday reports that Solidarity has declared a formal dispute with the government at the National Economic Development and Labour Council (Nedlac) over a wave of retrenchments.
In a press conference on Tuesday, Solidarity said that it “had no choice” but to take the matter to Nedlac in terms of section 77 of the Labour Relations Act after the President and Minister of Trade, Industry and Competition, Parks Tau, failed to respond to them. According to Nedlac’s rules, there must now be a formal mediation process between Solidarity and the government. The union said that retrenchment notices received by it in the past month alone directly and indirectly affected approximately 350,000 people. Major companies, including Glencore-Merafe, ArcelorMittal SA, Ford Motor Company, African Rainbow Minerals, and Goodyear SA, have issued the retrenchment notifications.
Solidarity blamed these retrenchments on “systematic failures” that have “rendered the operating environment increasingly untenable for industrial and export-driven companies.” These included the sharp rise in Eskom’s electricity tariffs, which has made local production less competitive than SA’s global counterparts. The union also noted that the “near collapse of Transnet’s railway and freight infrastructure” was severely hampering the movement of goods, increasing costs, and disrupting supply chains. Solidarity added that the retrenchments were also a result of the government’s failure to secure a timely and favourable agreement with the US regarding export tariffs.
- Read the full original of the report in the above regard by Kimberley Kersten at Newsday
- Lees ook, Solidariteit verklaar dispuut teen regering oor afleggings, by Maroela Media
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