When I first started writing this column I remarked that unemployment in South Africa was at an all time high.
I lamented the fact that it seems to be getting worse and that unless we do something drastically to change our labour dispensation we can expect to sink to all time lows with regard to job creation. Unfortunately, this prediction has come to pass.
Today on the expanded definition we are in the realms of 40 to 45% unemployment; in certain categories it has reached epidemic proportions.
Bearing this in mind, one would think employees today would treat their jobs with respect and would view employment as a valuable asset. Experience is showing me, as a labour lawyer, that this is not happening.
It hasn’t sunk into most people’s heads that putting your job at risk can be a life changing experience. The experience is normally a negative one.
Firstly, I am regularly giving advice to employers on disciplinary procedure and imparting knowledge on how to undergo a fair dismissal for breaching numerous types of offences.
The number of dismissals taking place on a daily basis is reflected in the referral figures to the Commission for Conciliation Mediation and Arbitration (CCMA). These referrals are at an all time high and clearly this shows how grossly negligent thousands of staff members are on a daily basis.
The referral figures to the CCMA show that the allegations of unfair dismissal are still by far the greatest figures. In the majority of these cases it has been ruled by CCMA Commissioners that the dismissals have been fair both procedurally and on the merits.
In other words, staff (employees) somehow don’t want to protect their positions, treating their employment status with a certain amount of disdain.
Secondly, retrenchments are still taking place every single day across the board. Up until four years ago when employers called for a retrenchment programme to be embarked upon, they often asked if there were any voluntary retrenchments.
Occasionally one or two people would state they were thinking of leaving in any event, hence they would accept a retrenchment package.
Over the last two years the opposite has been happening.
Recently, I was asked by an employer to consider helping them to retrench about 10 employees as they were overstaffed.
When I called for voluntary applications for retrenchment I received more than 15 names. We did not have to embark on a retrenchment programme and merely chose 10 of those 15 people to receive their package. Strangely, it appeared people did not value their jobs enough to remain in employ.
On closer inspection and after a structured discussion with those who volunteered, a different story emerged. People had dug themselves into so much debt that they viewed a retrenchment package with the extra money as a way out of their ugly predicament.
As one individual said, he owed an enormous amount of money; if you calculated his retrenchment package, outstanding leave, notice pay and pension money he was able to settle the debt and survive three months until he found another job.
The desperation was absolutely clear. The discussion then turned to the enormous risk this individual faced. Firstly, he might not find another job at the same salary or even in less in three months. Secondly, when he eventually has to retire his retirement funds will be insufficient to survive.
Despite these warnings people still insist on taking their money to sort out the immediate debt problem. This situation is repeated time and again.
It is important for staff across the board to heed these warnings extremely seriously. Jobs are scarce and even if your skills are sufficient, the chances of finding another job in this economy, with this enormous amount of unemployment, will be minimal.
From September retirement savings and any future contributions to retirement funding will be divided into three components. The accumulated retirement savings up until August 31, 2024 will go into a vested component. Moving forward, one third of your contributions will go to the savings component which will grow equally to your other investment. The remaining two thirds of the new contributions will go into the retirement component.
Individuals will be able to access the savings component once the balance reaches a minimum value of R2 000. Thus, the individual employee will be able to access some of their savings to pay off some debt. My plea is for people to seriously consider keeping their positions of employment.
Your job is an extremely valuable asset and almost impossible to replace. Should you hold on until the end of this year, you will be able to access some of savings from your retirement funds which might help ease the pressing debt mountain we all have.
* Michael Bagraim.
** The views expressed here are not necessarily those of Independent Media.
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