The CCMA, a statutory body for aggrieved employees, says it will no longer be able to operate at full capacity as a result of its upcoming R617m budget cut.
The government has had to cut the budgets of 41 departments to raise the R10.5bn embattled SAA needs to implement its business rescue plan. The budget cuts were also aimed at supporting the state's decision to extend the Covid-19 relief grant expected to cost the economy R6bn.
CCMA director Cameron Morajane told the Cosatu collective bargaining conference last week that the commission's finances were so dire that it had resolved to stop doing conciliation and would instead go straight to arbitration.
The commission, which is also focused on resolving labour disputes, had also stopped hosting its CCMA labour conference, and the shop-stewards and union officials conference, both held annually, due to budget cuts.
“We have scaled down on campaigns because the budget is not allowing. There will be no labour conference, no shop-stewards conference,” he said, adding that those requesting training from the commission would need to pay for it.
The cut will also affect its ability to help staff being retrenched by employers.
This will have a knock-on effect on the unemployment crisis, with the rate having risen to a record high of 30.8% in the third quarter, while 2.2-million jobs were lost during the second quarter.
The coronavirus lockdown has had a devastating effect on SA’s embattled economy, forecast to contract 7% or more during 2020, and has led to huge job losses.
More than 23,800 cases were referred to the CCMA during the hard lockdown between April and June.
Cosatu president Zingiswa Losi said the CCMA needed to be empowered to effectively take up workers’ cases. “We need to defend the CCMA. The butchering of its budget by the Treasury must be halted,” she said.
The CCMA refused to answer a detailed list of questions from Business Day, saying: “Given that our budget is currently undergoing internal review and approval processes by the governance structures of the CCMA, we are unable to respond concretely to the questions … at this stage.”
Labour analyst Michael Bagraim said the CCMA had been the best-performing government entity in the last decade. “It’s the shining jewel of the crown, but over the last two years they have been steadily cutting its budget,” he said, noting that the commission had been inundated with referrals during the lockdown period.
Bagraim said about four-million people were expected to lose their jobs due to Covid-19 in 2020. “If 10% of those workers lodge disputes that means 400,000 disputes will be going [the CCMA’s] way. The backlog is going to be enormous.”
He commended Morajane for cutting out the “nice to have things” such as conferences for the CCMA to stay afloat, noting: “The budget cuts have cut Morajane off at his knees. He has a terrible job now.”
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