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Johannesburg - About 200 Sappi [JSE:SAP] employees at the company's human resources, procurement, and communication divisions nationwide are facing a gloomy Christmas, trade union Solidarity said on Tuesday.
Sappi notified the trade union of the prospective retrenchments in a section 189 notice. The paper maker retrenched 156 employees earlier this year due to the closure of its Adamas mill.
Solidarity spokesperson Ilze Nieuwoudt said: "According to the notice, Sappi intends to implement the restructuring process to eliminate duplication in the human resources, procurement and communication divisions, which are currently decentralised, by centralising these functions again.
"Employees in posts where functions are duplicated will get the opportunity to apply for posts at Sappi's head office in Johannesburg if they are prepared to relocate. Employees whose applications are unsuccessful are likely to be retrenched," said Nieuwoudt.
Meanwhile, the trade union expects this to be the first of a spate of retrenchments at the company and in the industry.
"SA's forestry and paper and pulp industries are under immense pressure, as the same products can be imported much cheaper from other countries, especially China," said Nieuwoudt.
"Employees in these industries must therefore prepare themselves for what may lie ahead next year."
The retrenchment consultations between Sappi and Solidarity will be facilitated by the Commission for Conciliation, Mediation and Arbitration.
Sappi notified the trade union of the prospective retrenchments in a section 189 notice. The paper maker retrenched 156 employees earlier this year due to the closure of its Adamas mill.
Solidarity spokesperson Ilze Nieuwoudt said: "According to the notice, Sappi intends to implement the restructuring process to eliminate duplication in the human resources, procurement and communication divisions, which are currently decentralised, by centralising these functions again.
"Employees in posts where functions are duplicated will get the opportunity to apply for posts at Sappi's head office in Johannesburg if they are prepared to relocate. Employees whose applications are unsuccessful are likely to be retrenched," said Nieuwoudt.
Meanwhile, the trade union expects this to be the first of a spate of retrenchments at the company and in the industry.
"SA's forestry and paper and pulp industries are under immense pressure, as the same products can be imported much cheaper from other countries, especially China," said Nieuwoudt.
"Employees in these industries must therefore prepare themselves for what may lie ahead next year."
The retrenchment consultations between Sappi and Solidarity will be facilitated by the Commission for Conciliation, Mediation and Arbitration.
