SA Breweries (SAB) says the latest dop ban has forced them to let go of 550 contract workers as the company nears its maximum storage capacity at its nine brewing facilities.
Zoleka Lisa, Vice-President of Corporate Affairs at SAB, said the ripple effect of the country’s third alcohol sales ban was being felt throughout the beer value chain.
Lisa said that meant the company would continue to reduce production levels, as it navigated the unintended consequences of the prohibition, reports Cape Argus.
She said the lack of trade coupled with reduced storage capacity, had led to a slowing down of production, along with the uncertainty of the duration of the alcohol ban.
“This has resulted in the difficult decision to suspend 550 temporary contract workers across its SA operations.
“These temporary contracts will predominantly affect positions within SAB’s supply and logistics workforce.
“We are reviewing all measures available to us, but with minimal communication and engagement from the government on timelines for the ban, this has made business planning, and the consequential impact, extremely difficult.”
Liquor Trader Formations convener Lucky Ntimane said the ban is wreaking havoc across the industry.
“Should the ban on alcohol sales not be lifted in a matter of days, and we envisage seven days to be a breakeven period, then we should be prepared to part ways with a significant number of the 250 000 jobs that are at stake this very moment,” Ntimane warned.