A picture taken on October 20, 2010 shows the SABC (South African Broadcasting Corporation) headquarters in Johannesburg. South Africa’s crisis-hit public broadcaster posted a modest profit in the first six months of the 2010 financial year after a financial meltdown forced a government bail-out last year. AFP PHOTO / STEPHANE DE SAKUTIN (Photo by STEPHANE DE SAKUTIN / AFP)
SABC starts to retrench staff, trade unions vow to fight back
In an attempt to stave off complete ruin, the SABC has undertaken a series of cost-cutting strategies.
A picture taken on October 20, 2010 shows the SABC (South African Broadcasting Corporation) headquarters in Johannesburg. South Africa’s crisis-hit public broadcaster posted a modest profit in the first six months of the 2010 financial year after a financial meltdown forced a government bail-out last year. AFP PHOTO / STEPHANE DE SAKUTIN (Photo by STEPHANE DE SAKUTIN / AFP)
The South African Broadcasting Corporation (SABC) has initiated retrenchment procedures amid a deepening financial crisis.
In an attempt to stave off complete ruin, the SABC has undertaken a series of cost-cutting strategies. The SABC, while technically insolvent, still remains operational but is hanging onto its broadcasting responsibilities by a meagre thread.
SABC cuts jobs, instead of cutting executive salaries
While the collapse of the SABC can be attributed to the destructive forces of nepotism and mismanagement, bred under the disastrous tenure of former boss Hlaudi Motsoeneng, it’s, unfortunately, low-level staff who find themselves standing in the firing line.
The broadcaster’s current CEO, Madoda Mxakwe, confirmed that staff cuts would save the SABC about R400 million per annum, improving cash flow at a time when the company is unable to pay its service providers and is recording financial losses upwards of R600 million.
Inevitably, SABC’s failing becomes a burden to the taxpayer, as demonstrated by continuous government bailouts, the most recent of which totalled R1.2 billion. It’s these exorbitant handouts that afford the SABC the opportunity to keep slogging away in antiquated fashion.
Trade unions strike back
However, as the National Treasury vows to tighten its belt on bailouts, the national broadcaster’s board of directors has resolved to implement regeneration measures, one of which is culling its bloated workforce.
Instead of taking a pay cut, wealthy executives are beginning to chop employees from the bottom. This has angered trade unions, who have vowed to shut down the national broadcaster on Friday. During an interview with 702 Talk Radio, the Congress of South African Trade Unions’ (COSATU) Provincial Secretary Dumisani Dakile said:
“They [SABC] need to look at reducing the salaries of executives who are earning millions of rands and we don’t know what for.”
It’s been confirmed that the SABC is set to retrench 981 permanent staff members and over 1 000 freelancers.
COSATU is joining forces with the Communication Workers Union (CWU) in protest against the SABC’s retrenchment strategy.
