Further retrenchments as companies tighten their belts

In one of the papers we read the other day was the good news that SA’s employment rate was up in all sectors, according to the latest employment figures from Stats SA. The FTW brain buzzed with the questions: “Is this true for the freight industry? Is the outlook improving and in which sectors/job levels?” Although we looked for happy answers, they were not forthcoming. Indeed, said two recruitment specialists, exactly the opposite. It’s “belt tightening” time in freight, with the dread word “retrenchment” still being too frequently heard. Dr Lynn Ribton-Turner, managing member of Ribton- Turner Management Services, said she wished she could agree with the “jobs growing” statement. “However, sadly,” she said, “this week I heard of another three mid-size global freight forwarders advising staff of pending retrenchments. “I would be only too happy to join in on the more positive note of the comment (that employment rates are up), but it does not appear to be so for the freight forwarding industry.” Kim Botti, director of Lee Botti & Associates, also expressed disagreement with the “employment is up in all sectors in SA” statement. “We have seen a tough economy this year,” she said, “with many clients feeling it. “Tightening of belts has resulted in retrenchments still being evident. Also attrition, where staff are trained in multiskilling. “The recruitment process has also been slower as companies confirm the need for additional costs and take time to ensure that the right individual is hired.” Looking at the freight market conditions, Ribton- Turner said it appeared that client volumes were down hence fewer what she called “engine room” workers were required, and fewer managers to lead them. “The freight forwarders are also attempting to cut head count (costs) by moving various functions off shore and utilising more sophisticated technology. “The industry I have known for more than two decades is not recognisable in its new shape!” But, on the positive side, Botti pointed out that Africa offered opportunities for growth in the oil and gas and renewable energy sectors. These, she added, have opened new avenues. “There also still remains a strong focus on sales skills,” she said, “in order to bring in business for a number of our clients.” Ribton-Turner also noted certain areas of recruitment potential. “There is a great demand for estimators,” she said, “since many clients are calling for competitive quotations before shipping their cargo. “And, of course, sales people are always in demand; abnormal project staff and skills in road/ocean/air exports and imports of abnormal cargo are sought after; and Europe still believes Africa will be the saviour of their bottom line. “But, with Ebola preventing travel to/from West Africa and lack of infrastructure hindering the movement of cargo out of areas like Mozambique, it is taking more time. “Also, many ex-pats are being recalled due to the high cost of the ex-pat packages.” INSERT & CAPTION There is a great demand for estimators since many clients are calling for competitive quotations before shipping their cargo. – Dr Lynn Ribton-Turner