Transnet workers worried as the job cuts process begins through voluntary packages

COVID-19 has had a major impact on most big companies, some have managed to stand firm and try and to ensure their employees don’t feel the financial strain this has come with. Unfortunately Transnet is one of those companies and as a results they have moved to the next phase of its process of issuing voluntary severance packages (VSPs) after the state-owned freight and logistics company closed the application process earlier this month.

This comes after Transnet introduced the process in August in a bid to reduce costs on the business and ensure “long-term sustainability”. Minister of Public Enterprises Pravin Gordhan said recently that the entity would be undergoing changes to reform and improve efficiencies.

In a statement issued on Wednesday afternoon, Transnet said this process was open to all permanent employees in all areas of the business. The company said Transnet’s fixed labour cost accounted for 67% of total costs.

“The analysis of the uptake will give Transnet a picture of where the company should focus in re-allocating, re-deploying and enhancing current skills and roles to ensure continued operations. 

“Transnet has put adequate processes in place to ensure that its highly-skilled work force is preserved, particularly in areas where those skills are scarce and critical to the operations of the business,” the statement read. 

According to Transnet, critical skills will be preserved through mentoring and skills-transfer programmes focused on mentoring and transferring of critical skills. 

“These include the Transnet Leadership Development programme, which seeks to build leadership capabilities and skills at managerial levels. Transnet has also recently introduced the Silver Fox programme, which encourages employees who have been with the company for many years to transfer skills and knowledge to younger employees.” 

While Transnet did not say how many employees would be affected by this process, the United National Transport Union (UNTU) charged that the process granted VSPs to “all of almost 2 919 Transnet employees who applied”.

For the most part it is important that the affected companies do everything in their power to save their employees before taking the journey of retrenching.

Main Image: freightnews.co.za