The plight of the increasing numbers of retrenhees in South Africa is dire because their retrenchment packages are unlikely to last until they find another job even if they are fortunate enough to do so. However, the solution is not to double the burden on businesses that are retrenching due to financial difficulties. Doubling the burden that struggling businesses have to bear will severely worsen their already weak financial circumstances and result, at best, in more retrenchments and, at worst, in more business closures.
While doubling retrenchees’ packages might be a great populist political tactic it will backfire on workers trying to keep their jobs.
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