South African state broadcaster the South African Broadcasting Corporation has announced that it will be retrenching 400 employees. Photo: ANA/Karen Sandison
JOHANNESBURG – State broadcaster the South African Broadcasting Corporation has announced it will be retrenching 400 employees.
In a statement, the state broadcaster said it will be implementing Section 189 of the Labour Relations Act.
However, the SABC has indicated there are around 170 vacancies that employees can apply for, cutting down the number of employees that will be impacted to 230.
The employees to be retrenched will be offered a severance package of one week for each completed year of service.
“It become clear that, sadly, our organisation requires a difficult but necessary process that will result in the reduction of staff. The SABC is cognisant of the fact that this process will affect people’s livelihoods. However, having exhausted all other options, we are now faced with the difficult of having to restructure the organisation to ensure its sustainablity,” said the SABC.
Besides the retrenchments, the SABC will also be implementing and considering other ways to cut costs, including freezing salary increases for three year, reducing sick and leave days and stopping the encashment of leave days.
Madoda Mxakwe, SABC Group chief executive said, “This retrenchment is understandably very challenging for all our stakeholders. However, it is one part of our approved turnaround plan that will help to reposition the SABC to achieve financial sustainability”.
The retrenchment of the 400 employees comes after the SABC announced the possibility of 600 employee retrenchments in June 2020.
At the time, the EFF said an institution could not expect to build self-sufficiency and final prosperity through decreasing its workforce. “It is not a sustainable solution and will lead to the collapse of the SABC.”
BUSINESS REPORT ONLINE
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