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Johannesburg - Trade union Solidarity said on Friday that it had started talks with insurer Sanlam [JSE:SLM] and a commissioner from the Commission for Conciliation, Mediation andArbitration (CCMA) on the planned retrenchment of about 70 Sanlam staff.
Solidarity said Sanlam had issued Section 189 retrenchment notices in February to employees in its Pension Fund division at its head office in Cape Town as part of the restructuring of this division.
The process had been referred to the CCMA and the first consultation was held on Tuesday.
Solidarity said that Sanlam had "run ahead of the process by already advertising the positions and announcing a timeframe for the retrenchments".
"Sanlam already told its employees that the services of those affected by the retrenchments will be terminated at the end of May. These are things that should have been determined during the consultation process," Ilze Nieuwoudt, spokesperson for Solidarity, said.
"Solidarity is determined to limit the amount of retrenchments, but to negotiate the best severance packages for those who are affected by the retrenchments," she added.
According to Nieuwoudt, Sanlam plans to combine various task teams in the Pension Fund division, where a duplication of functions currently exists. Between 650 and 700 employees are currently working in this division.
"Solidarity requested that all employees who may be affected by the retrenchments should first be considered for vacant positions in other divisions within Sanlam before they are put on the list of retrenchments."
The union said about 42 Sanlam employees have already applied for voluntary severance packages which were offered shortly after the retrenchment notices were issued.
Solidarity said Sanlam had issued Section 189 retrenchment notices in February to employees in its Pension Fund division at its head office in Cape Town as part of the restructuring of this division.
The process had been referred to the CCMA and the first consultation was held on Tuesday.
Solidarity said that Sanlam had "run ahead of the process by already advertising the positions and announcing a timeframe for the retrenchments".
"Sanlam already told its employees that the services of those affected by the retrenchments will be terminated at the end of May. These are things that should have been determined during the consultation process," Ilze Nieuwoudt, spokesperson for Solidarity, said.
"Solidarity is determined to limit the amount of retrenchments, but to negotiate the best severance packages for those who are affected by the retrenchments," she added.
According to Nieuwoudt, Sanlam plans to combine various task teams in the Pension Fund division, where a duplication of functions currently exists. Between 650 and 700 employees are currently working in this division.
"Solidarity requested that all employees who may be affected by the retrenchments should first be considered for vacant positions in other divisions within Sanlam before they are put on the list of retrenchments."
The union said about 42 Sanlam employees have already applied for voluntary severance packages which were offered shortly after the retrenchment notices were issued.
