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There will be no retrenchments to fight recession, says Ramaphosa

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South African president, Cyril Ramaphosa has assured that government has a plan to revive the economy, and would not resort to shedding jobs.

The president of the governing national African National Congress (ANC) party, Cyril Ramaphosa said there would be no retrenchments within the public sector, as means to tackle the recession.

Ramaphosa spoke at the Congress of South African Trade Union’s (COSATU) electoral congress in Johannesburg on Monday, 17 September 2018.

Statistics SA announced on Tuesday, 4 September 2018, that the country had entered into a technical recession. The country’s Gross Domestic Product had decreased by 0.7% in the second quarter of the year. This follows a revised fall of 2.6% in the first quarter of this year.

A technical recession is defined by two consecutive quarters of a decline in economic activity.

In June 2018, Public Administrations Minister Ayanda Dlodlo denied reports of pending job cuts within the public sector, but said government had encouraged some staffers to take retirement packages and would also review the government’s performance management and incentive systems

The department had said that they would need to cut salaries by R10 billion a year. This would imply scaling down thousands of jobs

Ramaphosa said they were working on a plan to pull the country out of the recession and bring back investor confidence.

“The mass retrenchment of public sector workers is not under consideration”, he said.

Ramaphosa further added: “The context of slow economic growth and weak revenue collection means that expenditure on other critical things will suffer … but we need to address this in a way that does not put the livelihoods of public sector workers at risk.”

Thabo Baloyi
[email protected]

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