Cool Dairy Products (Pty) Ltd ('CDP') produces and distributes dairy products to grocery outlets in Gauteng. CPD employs 500 fulltime employees. Between the year 2016 and 2020, CPD experienced an unstable demand for dairy products as a result of the unusual rising and dropping of temperatures caused by the climate change. Dropping temperatures had a negative commercial impact on the CPD business and in response to that, CPD decided to retrench employees in stages. Retrenchments were conducted in the following manner:

In 2016, 17 employees were retrenched;

In 2017, 11 employees were retrenched;

In 2018, 7 employees were retrenched;

n 2019, 7 employees were retrenched; and

In 2020, 8 employees were retrenched.

With reference to relevant legal authority, answer the following questions:

(a) Define and discuss the ground upon which the employer relied on to dismiss employees in the scenario above. (10 marks)

(b) Grietjie and Mosebethwane argue about the scale of retrenchments conducted by CPD between the years 2016 and 2018. Grietjie argues that, it was a large-scale retrenchment whereas according to Mosebethwane, it was both a small-scale and a large-scale retrenchment.

(i) Advise Mosebethwane and Grietjie on what was the scale of retrenchments conducted by CPD between 2016 and 2018 and why? (3 marks)

(ii) Would your answer in (b)(i) above remain the same if you were to determine the scale of retrenchments conducted by CPD between 2016 and 2020. Motivate your answer. (4 marks)