Why Productivity SA wants changes in the labour law
Call for businesses to report their plans for retrenchments to the Department of Labour
Productivity SA wants the Labour Relations Act’s section 189 amended to compel companies in distress to report retrenchment plans to the Department of Labour. The entity, which is responsible for promoting employment growth and productivity, says it has been unable to save jobs as it is not always consulted by businesses. "One instrument we looked at is that the act should be amended to ensure that companies are compelled to report to the department to say we are going to retrench," said CEO Mothunye Mothiba. "If we achieve that it will make it easy for Productivity SA to get this information right on the spot and to be able to intervene." The Labour Relations Act requires businesses to consult employees, workplace forums and trade unions about its intention to retrench. However, in most cases, even if companies had reached out to Productivity SA, the likelihood of intervention was low as the organisation was facing financial difficulties that prevented it from fully delivering on i...
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