SAB looking at cutting jobs

Yet another major corporate – AB InBev’s South African Breweries (SAB) unit – is looking at cutting jobs, in the face of tough economic conditions in the country.

Moneyweb has learnt that between 300 and 500 jobs could be on the line at SAB, after being alerted by worried workers who received Section 189 letters on 31 January, proposing termination of their employment.

“Many of us have received letters saying our jobs could be cut and this has caused panic and confusion, especially for those who have been working at SAB for years,” said one worker.

The move has not only surprised workers but the Food and Allied Workers Union (Fawu), which noted that SAB agreed not to embark on mass retrenchments for five years after its former parent company SABMiller merged to become part of Belgian-based global brewing giant AB InBev in 2016.

“This is just not on and we are going to fight this move by SAB …. We have no doubt that the planned retrenchments are in some way linked to the 2016 merger and that the group’s foreign owners want to cut jobs in order to maximise profits,” Fawu deputy general secretary Mayoyo Mngomezulu said.

Mngomezulu said some 500 SAB workers had received notices of the planned retrenchments at the end of January, which follows about 33 workers having been retrenched by the group last year.

SAB spokesperson Refilwe Masemola confirmed to Moneyweb that the group is looking at cutting staff. However, she insisted that the move is not “merge-related” and instead linked to the operating environment.

“SAB confirms that it is currently in the process of reviewing its business operations, in light of the prevailing economic conditions in South Africa. The review, which is in line with the October 2016 merger conditions, will affect only a small minority of its workforce in specific areas and not across the business as a whole,” Masemola said.

SAB confirmed that it has applied for the Section 189A process, which will be facilitated by the CCMA, in consultation with Fawu. However, the group did not give any further detail on how many workers had been given the letters proposing termination of employment, or on ultimately how many workers will be affected by the retrenchment plans.

Mngomezulu said Fawu would be consulting its lawyers.