retrenchments ccma

Companies And Intellectual Property Commission (CIPC) said their recent data shows that South African companies are retrenching in large numbers due to their inability to operate because of coronavirus and the extended lockdown.

The COVID-19 pandemic has had a clear impact on companies large or small, with various government bodies reporting an increase in retrenchment and insolvencies, reports Business Tech.

CIPC commissioner Rory Voller said there was a visible increase of companies applying for business rescue.

Voller said a total of 140 business have submitted rescue applications since the start of the financial year.

In a parliamentary briefing on Tuesday, CCMA national senior commissioner Marius Kotze told the committee that 1,669 cases were brought to the CCMA in April compared with 849 cases to date in May.

Also read: Imperial Cargo is retrenching 330 truck drivers

Labour and employment minister Thulas Nxesi said the CCMA had received 17 applications for large-scale retrenchments in terms of section 189 of the Labour Relations Act and 151 smaller applications.

37 of these applications received during the lockdown period alone between March and April.

‘Large’ companies such as Edcon, South African Express, Comair and Phumelelea Gaming have applied for business rescue, however, smaller businesses have been equally impacted by the crisis.

Also read: 1, 350 jobs on the wire as COVID-19 crisis claim another trucking company

CIPC has had to relax its time frames around the business rescue process due to the lockdown, having difficulty with meeting stakeholders and reduced staffing capacity.

You May Also Like

Full list of services allowed in lockdown level 3 expected from end of May

In his address to the nation on 13 May, President Cyril Ramaphosa…

Daimler trucks fined $30m for delayed truck recalls

The National Highway Traffic Safety Administration (NHTSA) in the US said Daimler…

We Know You Are Bribing Our Staff With Perfume, Transnet Tells Truckers

Transnet Port Terminals (TPT) has acknowledged that they know about corrupt activities…

New Trucks-Only Crossing at Komatipoort to Alleviate Congestion on N4 on the Cards

South Africa’s mining sector, grappling with substantial revenue losses due to logistical…