Hundreds of jobs on line at Bay tank container exporter
Job cuts are on the cards at a Perseverance company, with almost 350 positions on the line at tank container exporter Welfit Oddy.
The proposed retrenchments are expected to cut across the board, from professionals and skilled technicians, to semi-skilled and unskilled workers.
Numsa regional organiser Xolani Ntshibilili said workers were served with a Section 189 notice last month, with the
Commission for Conciliation, Mediation and Arbitration (CCMA) process due to kick off before the end of the month.
“Their production requirements are for about 21 tanks a day and they have informed us their customers now require 13 a day,” Ntshibilili said.
Welfit Oddy director Andrew Gush declined to comment, saying only that the company would follow all required labour employment processes with the involvement of the CCMA.
According to the notice, a downturn in the European economy and crippling loadshedding have reduced demand and increased costs.
The notice was signed on February 28 by Welfit Oddy human resources executive Lee Dobell.
“Welfit Oddy is experiencing a significant reduction of tank containers due to, among other reasons, a downturn in the European economy, ongoing pricing challenges from the Chinese manufacturers, loadshedding in SA and the negative effects of Covid-19 now catching up with many businesses overseas,” Dobell said.
“The result is that we now find ourselves in a very difficult situation, which unfortunately is beyond the company ’ s control.
“The proposed reduction will affect direct employees, indirect employees, limited duration contract employees and temporary employment services employees.”
On its website, Welfit Oddy states that it specialises in the design, manufacturing and sale of tank containers, bulk liquid shipping containers and transport containers for the international chemical and food
grade logistics market.
Ntshibilili said the CCMA process would explore possible alternatives.
“The union has a right to reduce the number, motivate and if possible stop the whole process.”
According to Ntshibilili, the first to be laid off will be workers on limited-duration contracts.
“If there is going to be a possibility of retrenching any permanent employees, that will happen later, after they have seen the layoffs have not
helped due to the decrease in demand,” he said.
He said further clarity would be provided at meetings due to start on March 29.
“We are not yet at a stage to speak about everything.
“All will be determined in the upcoming meetings and the intention stated by the employer is that all the retrenchments are foreseen to happen after June,” he said.
The intention to downsize staff comes as the latest labour survey showed the unemployment rate in the metro increased to 34.4% in the fourth quarter of last year, compared with 33.6% in the third quarter.
A worker, 35, said his biggest worry was how he was going to pay his rent.
“I have no other place to go. I try not to take things personally but I am shattered,” he said.
“The situation is, of course, bigger than the loss of a single pay cheque.
“We pay tax, which contributes to the national purse which, in turn, employs other people.”
Another worker, 44, said many employees had already started looking for other jobs.
“Most of the guys got their letter and decided to start looking for something else because why must they come back and waste their time,” he said.