LETTER: Retrenchments are outdated as a solution
Where will profits come from with fewer consumers with income?
The second quarter of 2020 is expected to bring about more retrenchments after SAA’s commencement of consultations as it prepares to shed thousands of jobs. Telkom, Samancor Chrome, Massmart and Standard Bank are just some of the companies that have retrenched or are in the process of doing so. It is therefore clear that most sectors are affected and this will significantly increase unemployment over the next few years. What does this mean for SA’s economic outlook?
South Africans have been under financial pressure for some time. While the SA Reserve Bank has done its best to assist, most South Africans’ annual increases have been below inflation for the last few years. This against the backdrop of a heavy debt burden, in a country with one of the widest income gaps in the world. ..
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