Big spike in retrenchment applications, says CCMA

JOHANNESBURG – The commission for Conciliation Mediation and Arbitration (CCMA) has seen a massive spike of applications for large-scale retrenchments in terms of Section 189 of the Labour Relations during the national Covid-19 lockdown period, it said on Friday.

Speaking during a virtual briefing, CCMA director Cameron Sello Morajane said on Friday that the organisation had received 17 referrals of large-scale retrenchments affecting 3344 employees. He also said that the CCMA had received 151 referrals for Section 189 A applications which were not large-scale.  

“These numbers that I have just read are not a true reflection of the actual dismissals that are happening in the economy. Small-scale dismissals usually are not reported. There is no referral for unfair dismissals, there is no request for us to intervene, or to try to assist. The numbers you see are affected by the fact that the CCMA offices were on Level 5 lockdown,” said Morajane, adding that when the company resumed operations it would receive a huge number of referrals. Section 189A of the Labour Relations Act permits employers to dismiss employees for operational requirements.

Morajane said that the CCMA was concerned about the jobs bloodbath in small and medium enterprises as a result of the Covid-19 pandemic.

“We have noted with pain that a number of companies that have approached (us) are companies that are closing. Those that are largely affected are those that are small and medium. We have seen the bloodbath the CCMA has been talking about for months now,” said Morajane.