Dear Editor
The DA strongly opposes the Minister of Employment and Labour’s proposed job-killing retrenchment reform, which would double the costs of retrenchment for struggling businesses, stifling hiring and job creation in South Africa.
Higher retrenchment costs will entirely disincentivize job creation. Businesses will not hire if, when times are tough, they face massive costs from retrenchments. The risk will not outweigh the reward, and the scales will not tip toward new jobs being created.
Making it harder for businesses to respond to difficult circumstances only has one victim: the unemployed South African desperate for the security and dignity of a job.
The DA does note and welcome the broader set of reforms to lift the burden of regulation from small businesses and create a more flexible labour market in general. The DA has advocated for many of these reforms for over a decade – we are glad that labour and the ANC have finally admitted their necessity.
While these reforms are a step in the right direction, they fall short of what is needed to drive real job creation. We call on the Minister to fully exempt SMMEs from collective bargaining agreements negotiated between unions and large corporations, and to reject any increase in retrenchment pay.
The DA will continue to fight for reforms that allow our small businesses, the engine room of job creation, to grow and operate free from the costs of complying with regulations made for and by massive corporations.
South Africans want jobs. South African businesses want to create jobs. Minister Meth should get out of their way, and let them do so.
Regards
Michael Bagraim MP
DA Spokesperson on Employment & Labour