causes of retrenchments
Retrenchment is also known as down sizing. Causes of retrenchment in modern organizations i. Poor economic conditions leading to business down turn ii. Poor management leading to poor business performance iii. Increased competition and falling profits therefore the need to review products and work methods in order to improve competitiveness iv.
For example, employees now have the choice of going to court or of going on strike in order to challenge retrenchments, but the effect of a strike could further weaken the employer?s finances and necessitate further retrenchments. Retrenchment might be caused by a number of factors: * Faulty or archaic equipment or technology, ineffective management systems or underskilled/demotivated employees can reduce productivity, increase financial losses and affect jobs. * Employers may need fewer employees due to labour saving devices or technology.