By Thapelo Molefe
Parliament has sounded the alarm over South Africa’s deepening unemployment crisis, warning that pending job cuts at Coca-Cola and other major companies could have devastating consequences for workers, families, and the wider economy.
The Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, expressed grave concern on Friday following reports that Coca-Cola Beverages South Africa (CCBSA) plans to cut about 680 jobs as part of a restructuring process.
CCBSA currently employs more than 7,000 people across the country.
“These job losses threaten the livelihoods of thousands of South Africans. Unless urgent and coordinated action is taken, the damage to our economy, communities, and industrial base will be irreversible,” Boshoff warned.
The Coca-Cola retrenchments add to a growing list of major job losses announced in recent months.
Goodyear South Africa is preparing to shut down its Kariega manufacturing plant, putting about 900 jobs at risk. ArcelorMittal South Africa has announced plans to shed 4,000 positions which is nearly half its local workforce, including at its flagship Vanderbijlpark plant.
Meanwhile, Ford Motor Company South Africa has indicated that over 470 workers will be retrenched at its Silverton assembly plant, Struandale, and in administration.
The auto industry has been particularly hard hit, with more than 4,000 jobs lost over the past two years as 12 companies in the sector closed operations.
Boshoff said these retrenchments are a blow to already vulnerable regions such as the Eastern Cape, Bloemfontein, East London, Newcastle, and Vanderbijlpark, where communities are dependent on industrial employers.
“Small businesses, suppliers, service providers, and the informal sector are being thrown into uncertainty by these ripple effects,” she said.
The economic development committee has urged government to act swiftly to arrest industrial decline by prioritising clean energy investments and stabilising the power supply to boost business confidence.
“Consumers have less spending power, municipalities have less revenue, and households are struggling. Without immediate and coordinated action, we risk a downward spiral that will be difficult to reverse,” Boshoff said.
She called for an emergency multi-stakeholder summit involving affected companies, labour unions, and provincial governments to develop urgent interventions aimed at protecting jobs and restoring investor confidence.
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