On retrenchment: As per law, anybody who has worked regularly for 240 days has to be regularised as a permanent employee...if you analyse the trend across the industry, you will see that the trend in the formal sector is towards outsourcing and contract labour. And the share of the workforce has reduced. In the informal sector—like with farm labour or with the garment industry—there is no permanency. In such instances, there is no need for hire-and-fire. That is not to say there is no demand for hire-and-fire from industry.
On labour reforms: Perceptions have changed, but for labour, I must admit, it is not very palatable. While the legal system is well in place, yet there are mechanisms used by employers to deal with the situations (to avoid making employees permanent). Whether you approve of this or not, so long as the legal system permits this, nothing can be done.
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