- The ANC government plans to let 30 000 public servants go in order to save up to R20 billion in salaries in the next few years
- Most of the employees that will be retrenched are older people
- Cosatu has promised to fight this plan on behalf of the targeted employees
President Ramaphosa has announced the government plans to retrench 30 000 public servants in an effort to save on their salary bill.
The government wants to set in motion the planned retrenchment as soon as possible, according to a report by the South African.
R4 billion has already been set aside for the retrenched employees' severance packages.
It is believed that this cut in jobs will result in the government saving a whopping R20 billion in salaries by 2021.
An earlier strategy of the Treasury was to implement voluntary severance packages but it failed.
A senior ANC official discussed the planned retrenchment and failed severance package strategy:
The voluntary employee initiative is not working because employees are not moving. If we don’t deal with it now, we will still have the same number of government employees. So you must get rid of them so that it’s not only about reducing the strain in the form of ministers but also in the form of the number of officials.
The official added that unfortunately, the employees that will be retrenched are mostly older people.
Briefly.co.za learned that the retrenchments will take place shortly after the 2019 general elections.
However, Cosatu has promised to fight this planned retrenchment. Mike Shingange of Cosatu stated that no member of the union will be forced into early retirement.
We are going to make sure our members don’t agree and advise them not to accept anything. They must only retire when they are ready.
The Public Servants’ Association has rejected the planned retrenchments as well.
Cosatu plans to fight for those targeted by the ANC's plans for retrenchment.
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