Unions push for retrenchment changes in South Africa – including demands for more severance pay
The Congress of South African Trade Unions (Cosatu) says it will push for changes to be made to Section 189 of the Labour Relations Act, to make the retrenchment process fairer to workers.
The trade federation, which has an estimated membership of 1.8 million workers, said that the fundamentals of the labour market policy are ‘not sound’ and that “the overall thrust of the legislative framework remains inadequate”.
“The federation demands the amendment of section 189 of the LRA so that when employers wish to retrench, employers have to negotiate with workers.
“Cosatu wants compulsory third party intervention prior to retrenchments taking place in an event the union and the employer fail to reach consensus during their retrenchment negotiations. Employers should not be allowed to retrench until this process is complete.
“Furthermore, the severance package of one week for every year of service should be increased to one month of every year of service.”
Insolvency laws
The federation also demanded the ‘tightening’ of insolvency laws to alleviate the effects of liquidations on workers and their financial security.
“Unions and workers must be informed timeously of any financial difficulties being faced by the business and any possible liquidation at the time that it is contemplated or threatened,” it said.
Cosatu said that any application for provisional liquidation must be served upon the union and the workers. This application must prove that there are no alternatives to the liquidation, which would keep the business going and would save jobs, it said.
“Also, the employer must negotiate with unions. If the company is indeed forced to liquidate, the workers and employers’ contributions to medical aid and retirement funds should not form part of the liquated businesses.
“In respect of wages and other benefits, workers should be ranked above the secured creditors.”
Strike
The federation has also indicated that it will begin mobilising for major strike action in the first week of October.
The trade federation plans to go on a general strike on 7 October, with the protest focusing on corruption and perceived inaction by the government.
“The stealing of TERS Fund money by employers, price-fixing by food retailers and pharmaceutical companies, and the PPEs procurement corruption represent an assault against workers and the poor.
“Workers are dying from public and private sector corruption. Strikes remain an effective way of expressing anger and frustration. Ours is a dire situation and it is time to fight back.”
Cosatu’s general secretary Bheki Ntshalintshali said that the federation wants president Cyril Ramaphosa to speed up prosecutions of corrupt individuals.
“He (Ramaphosa) must stop negotiating with criminals and use the only language that they will understand which is prosecution and sentencing,” Ntshalintshali said.
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