Fedusa calls for moratorium on retrenchments amid level 3 restrictions

The union said that while it welcomed the extended restrictions as a tool to curb the spread of the coronavirus, they were concerned about the effect on the tourism, personal care, entertainment and hospitality sectors.

FILE: Members of of the tourism, food and alcohol, and hospitality industries protested in Sandton as part of the #ServeUsPlease movement. Picture: Abigail Javier/EWN

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) has called for a moratorium on retrenchments amid the level 3 restrictions.

The union said that while it welcomed the extended restrictions as a tool to curb the spread of the coronavirus, they were concerned about the effect on the tourism, personal care, entertainment and hospitality sectors.

These sectors are still reeling from the effects of levels 4 and 5.

The union said that companies must consider all possible avenues instead of continuously using workers as scapegoats.

Fedusa said that the adjusted level 3 by government is a “bittersweet” move in the light of the hardships being experienced by its members.

The federation said that hundreds of thousands of jobs had been lost due to the pandemic, both in the formal and informal sectors.

The union’s president, Riefdah Ajam, said that government’s stimulus package had also failed to deliver the silver bullet that many had put their hopes on, with inadequate results.

"The loan scheme and tax relief measures have yet to deliver the results that were promised considering that only a meager R15 billion of the R200 billion in capacity relief to SMMEs in particular in relation to the tourism and hospitality sectors were provided."

Fedusa said that large-scale retrenchments would leave many families financially paralysed.

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