By Staff Reporter
The process to revive financially-distressed Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU) is underway following the appointment of the Administrator in June this year by the labour court.
The appointment of Thulisile Mashanda, a chartered accountant with over 24 years’ experience in audit and financial disciplines, comes on the back of the labour court deciding to place the union under administration.
The decision meant that the management of the affairs of CEPPWAWU, including the regional and local structures, were vested in the administrator.
Christopher Hlekane, the former South African Post Office group chief executive, was also brought on board to lead coordination of several workstream. His role is to ensure that the union’s transformation meets all governance, legal, financial and operational requirements in line with applicable laws and the union’s constitution.
Mashanda said the team has over the past few weeks been hard at work, working closely with the union’s office bearers and employees to begin the daunting process of helping navigate the union out of troubled waters.
“We have assembled a highly capable team of professionals with expertise in finance, law, auditing, organisation turnaround and change management.
“So far, the team has begun a diagnostic analysis of CEPPWAWU’s affairs, specifically its operational and financial health. Part of this process involves discussions with the union’s employees, suppliers, employers of union members and bankers to appraise them of CEPPWAWU’s financial status as well as plans to stabilise it,” she said.
For more than five years, CEPPWAWU has been saddled with ever-increasing expenses and dwindling revenue.
“This, coupled with serious governance challenges as identified during the labour court process, has resulted in a poor financial situation.
The state of affairs notwithstanding, we have already identified areas where we can implement cost containment and revenue optimisation measures.
“Negotiations with suppliers and employees of the union are progressing well,” Mashanda explained.
Hlekane said it must be borne in mind that a union exists purely for the benefit of its members.
At the heart of resuscitating CEPPWAWU, he said, was the union’s ability to service its members in respect of labour-related matters such as salaries, conditions of employment, disciplinaryinquiries, and capacitation of shop stewards. We have already started with a pilot project with shop stewards to lay a firm foundation for CEPPWAWU’s reawakening.
“Despite operational and financial difficulties, what counted in the union’s favour is its substantial investments, which could be unlocked to stabilise it and service members.
“In this regard, discussions have been initiated with managers of the union’s investment company,” Hlekane said.
According to Mashanda, although CEPPWAWU’s turnaround process was still at an early stage, “we are encouraged by the understanding and support we have received from employees, members and union management.
“Union management and members engaged with so far have embraced the administration process”.
The Star