/ 26 November 2008

Fedusa voices concerns over job losses

The Federation of Unions of South Africa (Fedusa) and its affiliates on Wednesday said they were worried about the number of possible job losses resulting from the global economic crisis.

Affiliates of Fedusa voiced concern over the large-scale retrenchments already occurring in several companies in the mining, auto, and leather and textile industries.

Fedusa said that the Organisation of Economic Cooperation and Development (OECD) estimates that the number of unemployed people in OECD countries is expected to rise by eight million people over the next two years.

“The good news, we hear, is that the current challenging times are not here to stay and most economists predict that the storm will subside by the last quarter of 2009,” the union said.

In its economic survey of South Africa, the OECD forecasted that inflation should be close to the upper levels of the target range of 3% to 6% by 2010, and that the Fifa World Cup event should give the extra injection to normalise inflation and the growth pattern from 2011 going forward.

The labour organisation called on employers to place a moratorium on erratic retrenchments for the time being, so that it can first look at alternatives that would not have such a devastating socioeconomic effect.

“Rash action can only lead to more perils for workers and the economy. It is important that we co construct a solution to this complex problem,” it said. — I-Net Bridge