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Johannesburg - Momentum and Metropolitan Holdings [JSE:MET] were appealing against the two-year delay on retrenchments because they wanted to know if it included voluntary severance packages and early retirement, Solidarity said on Tuesday.
This came after the trade union held talks with the two companies on Tuesday afternoon to discuss the impact of their merger on the workers.
"Although the companies could not provide written assurance that no formal retrenchments will take place if the appeal is successful, they indicated that their intention with the appeal is merely to establish if voluntary severance packages and early retirement can be proposed should there be a duplication of functions," Solidarity spokesperson Marius Croucamp said in a statement.
"In addition, the companies indicated that they will even consider re-training and re-deployment before any offers are made to personnel."
He said the union would "keep an eye" on the process and act in the best interests of its members at Momentum and Metropolitan.
Earlier on Tuesday the union said it would oppose the appeal by the two companies.
The two-year moratorium on retrenchment was set as a condition for the merger between Momentum and Metropolitan.
"Solidarity welcomes the tribunal's ruling. It created a strong precedent that will discourage companies that are considering similar transactions from taking the easy route of retrenchment," Croucamp said earlier on Tuesday.
"Retrenchments must always be the last resort and in this case we suspect that profits will be boosted at the expense of the employees."
This came after the trade union held talks with the two companies on Tuesday afternoon to discuss the impact of their merger on the workers.
"Although the companies could not provide written assurance that no formal retrenchments will take place if the appeal is successful, they indicated that their intention with the appeal is merely to establish if voluntary severance packages and early retirement can be proposed should there be a duplication of functions," Solidarity spokesperson Marius Croucamp said in a statement.
"In addition, the companies indicated that they will even consider re-training and re-deployment before any offers are made to personnel."
He said the union would "keep an eye" on the process and act in the best interests of its members at Momentum and Metropolitan.
Earlier on Tuesday the union said it would oppose the appeal by the two companies.
The two-year moratorium on retrenchment was set as a condition for the merger between Momentum and Metropolitan.
"Solidarity welcomes the tribunal's ruling. It created a strong precedent that will discourage companies that are considering similar transactions from taking the easy route of retrenchment," Croucamp said earlier on Tuesday.
"Retrenchments must always be the last resort and in this case we suspect that profits will be boosted at the expense of the employees."
