THURSDAY, 11.00AM:
RESTRUCTURING and the downward economic cycle are the major contributors to the current trend of job cuts, a survey by labour analysts Andrew Levy & Associates released on Wednesday shows.
According to the survey, in which 165 companies with 315000 employees were interviewed, retrenchments will not abate for some time, as many companies have still to reach optimal operational levels.
The survey indicates that restructuring needs caused 34,8% of retrenchments over the period from 1995 to last year, compared with 18% for 1989/90. Economic slowdown accounted for 19,9%, against 52,9% in 1989/90.
Participating companies also indicated that sub-contracting or outsourcing services lowered the level of staff needed to operate at a cost-effective level.
At least 117 of the participating companies retrenched a total of 27558 employees, 8,8% of the workforce over the three years. The 1989/90 survey indicated the same number retrenched, but the sample was double the size — indicating retrenchments have significantly increased over the three-year period, and look set to continue, the report concludes.