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‘Staff accepting lower packages’

29 Apr 2021 - by -
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Given the large number of jobs lost in the wake of the Covid-19 crisis, Freight NewsFeatures editor, Liesl Venter, spoke to recruitment specialist Kim Botti, director at Lee Botti & Associates, about the impact of the pandemic on the freight and logistics sector.

FN: From a recruitment perspective what has transpired since March last year?KB: With the announcement of lockdown, many companies had to react to the sudden need to work from home and ensure their staff were equipped to work remotely. We did not see immediate retrenchments, but as the lockdown progressed and volumes decreased, we saw companies having to make alternate plans. Many reduced salaries, or had to deal with no work no pay challenges and the TERS frustrations. There were a number of retrenchments in the last quarter of the year as businesses realised that the effects of the pandemic were longer term than what was initially expected. The new year also brought about further uncertainty and caution as South Africa had gone into another lockdown in December. We have not seen the number of vacancies that we would ordinarily see in the first quarter of a new year.FN: Countrywide unemployment has been identified as one of the big outcomes of the lockdown – is this the case in the logistics/freight industry? What is your perspective?KB: We have seen that many industries have been affected by the pandemic and the logistics industry is included. We are still seeing retrenchments happening as companies are having to restructure their businesses to ensure they can continue operating. FN: What have been the biggest lessons learnt over the past year?KB: Remote working has brought both positive and negative feedback from our clients, and being able to adapt to change is a prerequisite as the change is happening more often.FN: If you compare March 2020 to March 2019 and then to March 2021 – what are your findings?KB: The economy in South Africa was in a tough situation prior to the pandemic, and with the onset of Covid, this has further impacted business. The number of available positions is down substantially on 2019, but we see that business is eager to move forward, and is showing positive signs of trying to get the wheels in motion. Since the lifting of severe lockdown, many companies have requested that their staff return to work. Managing staff, starting a new role, or trying to connect with clients and colleagues remotely is a major adjustment for people, and as the human connection is vital for us, many are trying to find ways to navigate through these changes.Salaries have also been readjusted, as companies employ on contract basis initially and often on a lower salary than what the individual might have been earning previously. The skills are critical but the company may not be in a position to pay high salaries – and as there are a number of people unemployed, we are seeing an acceptance of lower packages as they are well aware that the jobs are scarce and the opportunity to get employment is critical.FN: What are your biggest concerns going forward?KB: Although business is trying hard to get traction to move forward, challenges are being faced everyday – from infrastructure failure and increased administration demands to increased security measures etc. These are added pressures that are having to be dealt with on a daily basis. But South Africans are resilient and our Afrikaans term of ‘a boer maak a plan’ describes our ability to work through these challenges and rise above them. We continue to see companies endeavouring to make the best of the situation and move forward with the hope of better things on the horizon. Kim Botti

 

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