Johannesburg - Yet another public entity has embarked on a process that could result in the retrenchment of employees, barely a month after the SABC let go of over 600 workers.
The SA Bureau of Standards (SABS) has issued a section 189 notice to its employees, a measure it needed to fulfil in terms of the Labour Relations Act before retrenching.
The process started with consultations.
Up to 170 employees could lose their jobs by May 15, from a headcount of 832.
SABS hoped to save R150 million once retrenchments were done.
The standards bureau told workers a cash crunch forced it to consider retrenchments.
“The SABS is currently in dire financial straits,” it said in a notice.
It said Covid-19 exacerbated its cash crisis, as it had negative effects on the revenue generation efforts.
SABS employees were already reeling with fear over the prospects of losing their jobs.
Speaking anonymously, one said the writing was on the wall.
“As we have witnessed, other entities already cut both blue and white collar workforce,” he said.
Speaking to The Star yesterday, SABS spokesperson Nils Flaatten insisted the body had merely embarked on consultations in line with section 189.
“The SABS has not begun any retrenchment process,” he said.
“The salary bill remains the highest expenditure item which if not reduced, would threaten the financial sustainability of the SABS.”