Tough Labour Laws Can Promote Business Innovation

South Africa has become well known for its labour issues – strike season, wildcat strike, violent protests and above-inflation demands. Workers and labour unions often do not realise the impact that they have on business although their demands are sometimes justified. Contrary to the warnings and threats from established businesses, they are unlikely to shut down altogether.

Restructuring, retrenchments and cost cutting are more likely outcomes leading to smaller operations that can be profitable. However, it is the workers that will ultimately suffer – not all, but a good portion of the newcomers and unskilled employees who lose their jobs and are largely unemployable in the competitive South African market.

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