The group says they want to introduce a new business strategy in order to be relevant and cover lost profits.
As the South African economy is being reopened, the Forever Resort group in Mpumalanga has informed its workers that unavoidable retrenchments lie ahead of them, with 350 workers set to be affected by this.
The company informed its employees through a letter dated 5 August 2020.
The letter is titled ‘Section 189 Notice’ and is signed by HR manager Stephen de Beer, speaking about the “disastrous effect” that the Covid-19 pandemic had on their business.
And which “will still do in time to come”…
And as a result they are now restructuring their business.
In July 2020, workers in Badplaas took to the company’s gate to protest against being at home unpaid for 3 months.
Following the closure of the popular tourist destination the last week of March 2020 when President Cyril Ramaphosa imposed the national lockdown, the company said it suffered serious economic impact.
De Beer said they made their last payments to workers in April 2020 and had been waiting for government to assist the workers through the Covid-19 relief funds when they protested on first week of July 2020.
The company has 1 057 workers and between 300 to 350 will be affected by the looming job-cuts.
“In designing a new competitive business model,” said De Beer, “we have to re-design and re-engineer our business”.
“The monetary effect of not being able to generate an income but still having to pay fixed expenses has caused the company into financial distress,” he said in the letter.
De Beer said this is not final and were currently asking for inputs from workers on ways they can employ as a company to avoid or reduce the number of workers who ought to be retrenched, change the timing of the retrenchment or lessen the effect that those who would lose work will face.
“We have identified the strategic areas within each resort where we are able to reform and transform into an innovative and agile business.
“Unfortunately we do not believe that these transformation measures will save jobs and that job losses will still be necessary,” he said.
(edited by MLM)
Send tips-offs to [email protected]