/ 2 September 2004

Spoornet announces possible retrenchments

More than 900 Spoornet employees may face retrenchment in the next 60 days, the company said in Johannesburg on Thursday.

Spoornet acting general manager Vusi Mncube said the possible retrenchments are part of an effort to improve operational efficiency.

Mncube said Spoornet has started consulting unions on the possible retrenchments.

”It is anticipated that the consultation process should be completed within the next two months. Should retrenchments be unavoidable, notice would be served on the remaining affected staff.”

Mncube said while Spoornet has already compiled a list of 946 affected staff, this is not the final number of retrenchments.

”It depends on the consultation with the unions. The figure also goes up and down depending on the re-matching process.”

Prior to Thursday’s announcement, the company had set up a monthly re-matching committee where the list of affected staff was compared with current vacancies. Where possible, affected staff will be appointed to vacancies.

Affected workers were offered voluntary severance packages. Relocation benefits were increased in an effort to encourage redeployment.

”In spite of all these measures the number of affected staff has grown. Issues such as current location, age, skills profile are the main contributors to this situation.”

Mncube said while consulting with the unions, Spoornet will make further efforts to redeploy the affected staff.

The possible retrenchments will cut right across Spoornet departments.

”It affects general staff all the way from office workers to head office.”

Those employees who are finally retrenched will qualify for a severance package.

Retrenched workers will also be registered with the Transnet Social Plan Unit, which will assist them with career guidance and financial counselling. — Sapa