SABC likely to retrench staff

SABC executives and board members told members of parliament yesterday they were still engaging with employees about possible retrenchments at the cash-strapped broadcaster.

SABC chairperson Bongumusa Makhathini and his team were briefing parliament about their turnaround plan, which would include restructuring which was likely to lead to retrenchments.

“We have consulted with the shareholder representative [government], we have also engaged with unions and employees,” Makhathini told MPs.

He said employees’ salaries were one of the biggest costs at the SABC, totalling 43% of operating spend.

The total wage bill was R2.6 billion for about 3 400 employees in 2017-18.

SABC board member Jack Phalane told MPs the focus now was on consulting unions and workers about finding a solution to avoid dismissals and retrenchments.

“Only after that process we will be able to say, based on the consultation with employees, this is the best way to avoid any retrenchments of any workers,” said Phalane.

“Currently, we have all seen the wage bill and something needs to be done.

“You need the employees to assist the SABC to get out of the situation it is in.”

The 2017-18 financial year saw the SABC collect revenue of R6.6 billion against R7.2 billion expenditure, a shortfall of R635 million.

The SABC is projecting that the shortfall will reduce to R283 million, with a profit of R159 million for 2019-20.

The turnaround plan promises to cut waste, optimise operating spend and enhance revenue, including through new ways to collect TV licence fees. – ANA

Currently, we have all seen the wage bill and something needs to be done. You need the employees to assist the SABC to get out of the situation it is in. Jack Phalane SABC board member