Productivity SA may be forced to retrench staff
The Department of Labour entity set up to help struggling companies finds itself in a financial crisis
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, the department’s flagship initiative for job retention, faces collapse should its cash crunch persist. Staff have already approached the South African 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. This week the Department of Labour transferred R9.7m to help Productivity SA cover its operational costs. However, Productivity SA CEO Mothunye Mothiba said the organisation will require more assistance to stay afloat in the long...