Urgent call for a multi-stakeholder summit to address job losses in South Africa

Government is urged to convene an emergency multi-stakeholder summit to address the rising tide of job losses that could decimate key industries, jeopardise community stability, and erode investor confidence.

Reports indicate that Coca-Cola Beverages South Africa (CCBSA) plans to cut approximately 680 jobs as part of a restructuring process, affecting a company that employs over 7,000 people nationally.

The announcement follows job losses in the automotive sector, where more than 4,000 positions have been eliminated in the past two years alone.

Sonja Boshoff, chairperson of the Select Committee on Economic Development and Trade, expressed concern, stating, “Unless urgent and coordinated action is taken, the damage to our economy, communities, and industrial base will be irreversible. The stakes are high, and these job losses will push families into greater precarity, further eroding trust in our economic stability.

Boshoff added that Goodyear South Africa's planned closure of the Kariega manufacturing plant will end manufacturing at that facility, placing roughly 900 jobs at risk.

Meanwhile steel giant ArcelorMittal South Africa plans to cut 4, 000, almost half of its South African workforce, including major cuts to its flagship Vanderbijlpark steel plant.

Ford Motor Company South Africa has indicated that over 470 employees will lose their jobs across the Silverton assembly plant, Struandale engine plant, and administration.

She added that regions such as the Eastern Cape (where Goodyear’s plant is located), Bloemfontein, East London, Newcastle, Vanderbijlpark, and others are already vulnerable, and these retrenchments will only amplify socio-economic stress.

Boshoff said the Minister of Trade and Industry, Parks Tau, recently made reference to 12 companies in the automotive industry who were forced to close their doors. Those companies were Gabriel, ⁠Johnson Mathey, ⁠KLT Automotive, ⁠Steelbest, ⁠Foxtec Ikhwezi,  ⁠Alfred Teves Braking Systems, ⁠Jaschke, ⁠Goodyear, ⁠NGK Ceramics, ⁠TE Connectivity, ⁠Corning and ⁠Venture.

"Consumers have less spending power, municipalities have less revenue, and households are struggling. Without immediate and coordinated action, we risk a downward spiral that will be difficult to reverse," she said.

Boshoff said she will be requesting that all relevant Ministers and departments, as well as affected companies like Coca-Cola and Goodyear, come to Parliament to explain the circumstances leading to these job losses and present clear plans to mitigate the impact.

"I will also request my committee to push for a coordinated national response.

"I would like to see the government moving beyond talk to taking decisive action. This could be the convening of an emergency crisis summit with the affected industries and unions to halt further retrenchments. It is abundantly clear that the time for planning is long gone; we now need execution," said Boshoff.

Economist Dawie Roodt, attributed the economic stagnation to inappropriate macroeconomic policies and government corruption.

He said it was really unfortunate what is happening in South Africa.

"The motor industry is facing tremendous competition from the Chinese and that is part of the reason why the motor industry is closing down. There are industry specific reasons and then the broad general reason is that the economy is not growing.

"I believe the economy is not growing because of the wrong macro economic policies and incompetence quite often by the government because of corruption," said Roodt.

He said this was likely to continue as long as the ANC is part of the equation.

"Ideologically they will keep on implementing the policies that lead to this kind of weak economic growth that we've been experiencing recently and they will keep on employing their cadres. I can't see a major turnaround when it comes to corruption.

"As long as we have the ANC this will continue. Our problem in South Africa is not economics, the problem is politics. We need to change that. I don't think you will be able to change the ANC. As long as they believe in their specific ideology they will keep on doing what they are doing now. The only answer is we must get rid of the ANC," said Roodt.

SUNDAY TRIBUNE