Report finds South Africa has the world's worst labour relations

Report finds South Africa has the world's worst labour relations

South Africa has ranked dead last in the World Economic Forum's World Competitiveness Report. The report says that SA has the worst labour-employer relations on a global scale. This indicates that there is a need to simplify labour legislation to make it easier for employers to navigate.

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The World Economic Forum has released their latest World Competitiveness Report and it has indicated a grim situation for South Africa.

The report ranked SA 137 out of 137 countries, claiming that the nation has the worst labour-employer relations in the world.

A contributing factor to this, according to eNCA, was how complex labour legislation is for businesses, especially small businesses, to navigate.

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Only 41% of SMEs have confidence that the latest labour laws are conducive to growth in business, according to the recent Business/Partners SME Index.

Kgomotso Ramoenyane, Executive General Manger of HR for Business Partners Limited, says that the labour law in South Africa is not equally in favor of the employer.

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Ramoenyane says that legislature should be simplified to ease the strain on employers and to encourage economic growth.

With unemployment rates at an all-time high in SA, this could be a symptom of the true challenges preventing smaller businesses from engaging with potential employees.

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