South Africa lost 15,000 jobs in the formal sector in the first quarter of this year as the economy continued to flounder, Statistics SA said yesterday. But the economy overall shed 355,000 jobs, including those in agriculture and households, in the first quarter, according to an earlier report, the Quarterly Labour Force Survey.Statistics SA's Quarterly Employment Statistics survey published yesterday shows that employment fell in all industries except for community services, construction and electricity-related work.The jobs bloodbath comes at a time when South Africa is fighting to avoid the downgrading of its sovereign credit rating, which is hovering precariously one notch above junk status. The rating is up for review in six months.With the labour market on its knees, Finance Minister Pravin Gordhan is working to avoid a ratings downgrade later this year and has called for joint efforts by labour, business and the government to kick-start the economy.In an effort to help turn the tide on unemployment and continuing job losses, labour federation Cosatu has called on the unions affiliated to it to tread carefully when negotiating pay increases.For the first time, Cosatu is calling for restraint. It says there should be a balance between wage demands and the preservation of jobs.Sizwe Pamla, Cosatu's national spokesman, said yesterday that the call to affiliates was to "negotiate with a view to preserving jobs".Pamla said that, as the economy continued to shed jobs, it was important that wage negotiations were well managed."We have called on our affiliates not to over-promise and demand wages that will lead to workers losing their jobs down the line."What we are saying is that workers should not be misled and promised increases that will affect their jobs. We are approaching a recession and if this economy collapses it will affect all of us. We are all in danger," said Pamla.Cosatu general secretary Bheki Ntshalintshali called for a rethink by unionists involved in salary negotiations."You don't want to get an increase and then thereafter people are retrenched and only a few remain to enjoy the benefits of that increase."Cosatu said it would advise its affiliates to push for above-inflation increases for those at the bottom of the pay scale.It said better-paid workers would negotiate for increases in line with inflation, which was at 6.1% in May.Ntshalintshali said that under the present economic conditions excessive executive pay would make it difficult for unions to reduce demands or accept lower increases."'How can a single person get a R71-million a year salary and yet somebody else cannot survive,' they will say. There needs to be a change in attitude."For the lower grades it really has to be inflation-plus. We don't determine how much above inflation [the demand should be] but it can't be at inflation level, it can't be below inflation."Platinum workers in a union not affiliated to Cosatu, the Association of Mineworkers and Construction Union, went on strike for five months in 2014, demanding monthly pay of R12,500 - but the pay of the CEOs of the three biggest platinum producers ranged between R7.5-million and R18.5-million per annum.Cosatu affiliates will be involved in pay negotiations this year on behalf of platinum miners, teachers and health workers.Cosatu affiliate the SA Transport and Allied Workers' Union began wage talks last week, and the Food and Allied Workers' Union, also an affiliate, plans to end its wage talks this month.The talks come at a time when Africa's most industrialised economy is projected to grow at its slowest since the 2009 recession with unemployment at about 27%.Cosatu, which is a member of the tripartite alliance led by the ANC, plans to encourage its negotiators to develop policies that will guide their long-term approach to pay talks so multi-year deals can be reached to create stability, he said.- Additional reporting by Dominic Mahlangu..