Mdladlana: Workers aren't dumb

Johannesburg - Labour Minister Membathisi Mdladlana on Thursday called on employers to do all in their power to prevent job losses in the current global economic crisis. Employers must look at alternatives such as constraining bonuses, and retraining and reskilling workers to prevent job cuts, Mdladlana told the national bargaining conference of the Chemical Energy Paper Printing Wood and Allied Workers' Union (Ceppwawu) in Pretoria.

"We ask them to speak to their workers. Workers are not dumb. When employers engage with their workers they may find better solutions than retrenchments," said Mdladlana.

"Stemming the rising tide of retrenchments is critical for us all. What will also be critical will be high quality and courageous leadership from government, business and labour and there will not be much room for mistakes."

Mdladlana said for every worker retrenched, four other people would be affected financially.

He said tens of thousands of jobs were already lost in the mining, manufacturing and retail sectors.

"All we can safely say is that it is not inevitable that South Africa will move into an economic crisis," he said.

"A very important factor will be job losses. The more jobs lost, the more we lose productive capacity, the more demand weakens and the more workers suffer."

The presidential joint working group organised by labour, business and government has met regularly since December and together with the National Economic Development and Labour Council have put together a framework for South Africa's response to the international economic crisis.

This framework contains a number of joint committees that address issues such as investment in public infrastructure, macroeconomic policy, industrial trade policy, employment and social measures.

"This month we are engaging in structured interaction with organised labour and business to look at short-term responses that can help us avoid the crisis but that can also strengthen our economy and position it to take full advantage of the upturn in economic activity, when it comes," Mdladlana said.

- Sapa