SABC

(Flickr: Warrenski)

SABC employment confusion: Will the embattled company cut jobs?

SABC employees have been left in limbo.

SABC

(Flickr: Warrenski)

The South African Broadcasting Corporation (SABC) is hanging on by a meagre thread but refutes evidence that is planning to cut jobs.

This was announced by the newly appointed SABC spokesperson, Neo Momodu, following an internal discussion centred on cost-cutting strategies.

Confusion surrounding job cuts

Naturally, employees at the embattled company feared the worst – as cost-cutting usually relates to retrenchments – but the SABC says that there will be no jobs lost, despite extreme financial strain plaguing the company.

This latest statement came as a surprise to many, following an internal memorandum which was sent out to employees earlier in the week which stated that retrenchments were inevitable. This has resulted in more confusion at the already baffled broadcaster.

On Thursday, the broadcaster announced to staff that it would be embarking on a retrenchment process as prescribed by section 189 of the Labour Relations Act. While this statement was undersigned by Group CEO, Madoda Mxakwe, Momodu told News24 that the word ‘retrenchment’ wasn’t part of company’s vocabulary, stating:

“We have communicated to our staff of intentions to start engagements with unions in relation to the cost-cutting measures that we have been going through as the corporation. We are not saying we [are] there yet. We are contemplating it.”

SABC nearing bankruptcy

This latest discrepancy comes following the broadcaster’s annual executive salary report. It revealed that, in total, the group paid R45.5 million in salaries to its 40 senior managers. Remuneration for executives and board directors average R1.13 million per person.

This at a time when the national broadcaster has recorded a loss of R622 million and is struggling to pay service providers.

Yet, it seems Union pressure is diverting the company away from job cuts, which it says, may be the only way to keep itself afloat. Momodu added that job cuts were the last resort, saying:

“It’s a contemplation and we told the unions that we had done all we can to cut costs in all the areas of the corporation.”