IOL News reports that South Africa is rich with potential despite our many socio-economic challenges, in particular dangerously high levels of unemployment, poverty and inequality. Our single greatest obstacle is our 42.4% unemployment rate. When so many struggle to find work, we cannot afford to see a single worker lose their job.
Employers must be sensitive to the high levels of indebtedness that most workers find themselves in, the many unemployed relatives they support and the rising costs of living. The motor industry is an important pillar of South Africa’s industrial and retail sectors, employing thousands and nurturing important value chains.The motor manufacturing sector is the backbone of the economy in key industrial towns from Gqeberha to Buffalo City in the Eastern Cape, to Tshwane and Ekurhuleni in Gauteng and eThekwini and Richards Bay and KwaZulu-Natal. It supports the motor retail sector across our towns and cities with more than 100 000 employees.
The Congress of South Africa Trade Unions (COSATU) has been deeply alarmed by December reports that Motus, a major retailer, with several international franchises in its fold, retrenched over 80 employees and plans to cut over 900 staff members’ salaries by up to 30%! Whilst Motus’ management views these workers as mere statistics to be dispensed with, these retrenchments and salary cuts are devastating news for these hardworking staff who have given their sweat to grow this thriving company and sector.
Retrenching staff over Christmas speaks volumes about a corporate South Africa that only values balance sheets and fails to appreciate employees as human beings with responsibilities and families to take care of, and who will struggle to find work in an economy barely growing at 1.3%. Motus’ announcement of retrenchments and salary cuts falls foul of the Labour Relations Act’s requirements. It is tragically a story that affects thousands of workers across workplaces. Several issues in Motus’ actions fail the test of logic. One would assume that retrenchments and salary cuts for so many would be because the company is in severe financial crisis and has no choice but to impose painful cuts to survive.
A cursory glance at Motus’ financial statements paints a very different picture. It’s reported that in the last financial year Motus saw a 1% growth in profits to a massive R2.5 billion. Whilst some of Motus’ franchises are posting losses, a simple and humane alternative to such painful retrenchments would be to redeploy stuff across the Motus group where franchises not experiencing such losses could absorb the affected staff.
Weeks after retrenching over 80 workers during Christmas, Motus has now published a jobs advert for young workers under government’s Youth Employment Service (YES) programme. YES is a progressive initiative by government with the private sector to give young people a path to enter the labour market and gain the experience, skills and confidence needed to find permanent employment. It beggars belief that in December Motus said it needs to retrench staff and a month later it replaces them with a youth internship programme. This is a blatant abuse of the YES programme and is nothing short of dismissing older workers for cheaper young workers. This is something that Cosatu has warned government about previously.
Motus seemingly believes that only junior staff must pay the price with management left untouched. Sacrifices must be shared by all and start with well-paid management and shareholders. We have been amazed by reports that the CEO of Motus was paid R35 million last year. It is beyond shameful that the path to cutting expenses is sought by pickpocketing junior staff living paycheck to paycheck.
by Solly Phetoe