No retrenchments yet – but signs of belt-tightening

Although it is argued that the present global economic turmoil must eventually have a serious impact on the SA freight and trading industries, the current mood still seems relatively positive. “Most freight companies have actually had a pretty good year so far,” said Lynn Ribton-Turner of freight industry employment specialists, Ribton-Turner Recruitment, “although a lot of this comes from imports, and those riding on the weak rand exchange rate.” That situation, she suggested, meant that for most forwarding companies import revenue in rand terms had increased quite tidily – a useful support for their annual income. But the signs are that the employment market will tighten up next year. “So far we haven’t come across any retrenchments at all,” said Ribton-Turner, “and companies are actually saying they still need to replace staff that leave. “But they are also trying to spread work around their current staff, and there will be careful recruitment in 2009.” Lee Botti, MD of freight recruitment company Lee Botti & Associates, agreed – although she also noted that there had been some talk of retrenchment in her customer base. “Companies are already tightening their belts this year,” she told FTW, “and signs of this are requests to staff to support each others’ workloads and work longer hours. “From an economic point of view, clients are saying that they haven’t seen a big drop in business yet, but they’re certainly becoming more cautious in their recruitment policies.” Both our employment specialists are in agreement about one thing. The massive skills shortage in the freight industry will dictate what happens in the recruitment market. “There’s a dire shortage of skilled staff,” said Botti, “and it’s going to be the unskilled that will get laid off, not so much the skilled.” Ribton-Turner is of the same mind. “The skills shortage will underpin everything,” she told FTW.