Johannesburg - The economic downturn and the upheaval in world financial markets is costing jobs, with the financial services sector worst affected.
Banking group Absa, which has already cut 100 senior posts, has announced it will slash a further 400 jobs as higher interest rates and inflation have stalled growth in consumer lending.
The Banking, Insurance, Finance and Allied Workers Union (Bifawu) says it has received notices from employers that puts a further 1 000 jobs at risk.
Bifawu dispute resolution officer Mfundo Nhlapo says short-term insurer Mutual & Federal plans to lay off 623 employees.
"We have also received a notice from Scorpion Legal Protection. It appears several jobs are on the line," says Nhlapo.
Casualisation
Bifawu says it is most concerned by the tendency of employers in financial services to externalise positions.
"More companies are looking to change work practices. Casualisation and use of labour brokers is becoming the norm and we have received complaints from members who say they are being asked to reapply for their jobs," Nhlapo says.
"The situation may yet get worse as the meltdown in global markets and the high interest rates continue to bite," he says.
First National Bank chief executive Michael Jordan says the bank has had to focus on costs: "However people cuts are behind us.
"We achieved much of the right-sizing through natural process such as normal turnover, resignations and releasing of contractors. There has been no need for centre-led retrenchments or redundancies," he says.
Bones Skulu, general secretary of the SA Commercial, Catering and Allied Workers Union, says about 5 000 retail jobs have been lost to business liquidations.
"Bankruptcies are a big issue in our sector and they are costing jobs," he says.
Saccawu members at retailer Woolworths are engaged in a drawn out strike over the union's right to collective bargaining.
Late on Friday, the company's press office said there had been no breakthrough but that talks were continuing at the Commission for Conciliation, Mediation and Arbitration.
Clothing sector
The clothing and textile sector is also battling to survive the slowdown in the economy, with more than 20 factories closing down this year alone and about 4 700 workers losing their jobs.
Andre Kriel, deputy secretary-general of the SA Clothing and Textile Workers' Union, says his sector has been adversely hit by the negative economic developments, with more factory closures imminent.
"We are fighting some of the planned closures, however with falling demand it does not look good."
The clothing industry creates 11 new jobs for every R1m in sales, compared with four jobs per R1m sales in the economy as a whole.
"In other words, our industry creates three times as many jobs as the rest of the economy.
"Reduced consumer spending has contributed to a downward trend, and if it continues the "industry's problems will be aggravated," says Kriel.
Other industries are also struggling to deal with rising costs and slowing demand.
The National Union of Metalworkers of SA says there has been job shedding in the auto industry, particularly in the vehicle components sector.
- City Press