COSATU wants retrenched workers to be paid two weeks for every year served instead of the current minimum of one week.
The union federation has called on Employment and Labour Minister Thulas Nxesi to use his powers to change the laws on retrenchment.
Cosatu spokesman Sizwe Pamla said the law was introduced in 1996 and had to be changed as it gave workers too little.
“It’s the federation’s view that the current severance pay package of one week per year of service is grossly inadequate, and must be increased as a matter of urgency.
“The failure to set an adequate level of severance pay in statute undermines the job security of workers, and enables employers to retrench at will.
“The urgency with which this issue must be addressed is increased by the coronavirus pandemic and its anticipated impact on employment,” said Pamla
He said Cosatu affiliates were reporting widespread retrenchments.
The federation demanded that Nxesi table the issue to be discussed at the National Economic Development and Labour Council.
Businesses have predicted that as many as between one million and 1,6 million people could lose their jobs as a result of lockdown.
Yesterday, Mineral Resources Minister Gwede Mantashe called on mining companies to withdraw retrenchment letters and to protect workers.
“During lockdown, I called four mines reported to be issuing Section 189s to the department head office and I said to them that they can’t use a lockdown period for Section 189, and they withdrew the notices,” Mantashe was reported as saying.