ILO: retrenchments must be last resort

ILO says companies should find other alternatives to reduce their costs.

Food manufacturing giant Pioneer Foods is set to retrench more than 1,000 employees. Picture: Pioneer Foods

CAPE TOWN - The International Labour Organization (ILO) says companies should be looking at ways to retain staff instead of implementing retrenchments.

Eyewitness News has confirmed several top South African companies are axing top-level employees to save on their bottom lines.

Food manufacturing giant Pioneer Foods is set to retrench more than 1,000 employees, while retail giant Pick 'n Pay has let 400 head office personnel go.

ILO's Vic van Vuuren says companies that are embarking on mass retrenchments are ignoring the unemployment crisis in the country.

Van Vuuren says there are other alternatives that should be implemented, such as reducing an employee's hours.

He says some employers are being crafty to retrench from the top down as senior staff members are not unionised.