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Telkom to retrench 3000: 'Unemployment now worse than during Great Depression'

16 January 2020 11:32 AM
Tags:
Eskom
Jacob Zuma
Economy
Cyril Ramaphosa
Diesel
Unemployment
Telkom retrenchments
ArcelorMittal
Nedbank
Economic growth
Renewable energy
SAA retrenchments
Dennis Dykes
retrenchments
GDP Growth
Saldanha Steel
Massmart job cuts
Great Depression
We’re starting to see capitulation [by companies giving up on the economy recovering], says Nedbank Chief Economist Dennis Dykes.

We’ve found the drunken sailor [Jacob Zuma] who was busy looting the Titanic left, right and centre. He is now gone. The new captain [Cyril Ramaphosa] has taken over. It is now painfully clear that the iceberg is making its way and will be ripping through the hull. But the captain is too scared – because he needs to consult with everybody, because they have an officers’ meeting and he might be ousted, so he’s got to compromise…. dissolved some of his backbone…

Kieno Kammies, presenter - CapeTalk

Telkom has formally notified labour unions of its plan to retrench 3000 workers.

This announcement comes shortly after Massmart announced the closure of 34 stores, thereby making 1440 of its employees redundant.

SAA is in business rescue.

If that process fails – and it’s more likely than not – 10 000 people may lose their jobs.

There’s also the imminent closure by ArcelorMittal of Saldanha Steel.

Photo by malcolm garret from Pexels

Kieno Kammies interviewed Dennis Dykes, Chief Economist at Nedbank.

[South Africa’s unemployment rate] is horrendous! It’s worse than countries experienced during the Great Depression of the 1930s. It’s quite incredible. And it’s been sustained for such a long time; that’s the real tragedy.

Dennis Dykes, Chief Economist - Nedbank

We’re starting to see capitulation [by companies giving up on the economy recovering] … The unreliability and cost of electricity…

Dennis Dykes, Chief Economist - Nedbank

… population growth is at 1.4% while economic growth last year was 0.3%. This year – if we don’t get vigorous load shedding – we’re pencilling in economic growth of 0.7%...

Dennis Dykes, Chief Economist - Nedbank

There is quite a lot that government can do immediately which would definitely improve the situation…. Freeing up of the electricity sector… it’s completely bizarre! We’ve got extra electricity that Eskom refuses to buy… We just have to write something down and sign it! … It’s bizarre… running the [diesel] generators costs R36 or R37 [per kWh] versus 40 cents [renewable energy]! You can’t make this up!

Dennis Dykes, Chief Economist - Nedbank

Listen to the interview in the audio below.

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16 January 2020 11:32 AM
Tags:
Eskom
Jacob Zuma
Economy
Cyril Ramaphosa
Diesel
Unemployment
Telkom retrenchments
ArcelorMittal
Nedbank
Economic growth
Renewable energy
SAA retrenchments
Dennis Dykes
retrenchments
GDP Growth
Saldanha Steel
Massmart job cuts
Great Depression

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