Allied Technologies CEO Craig Venter has assured the unions and employees at its telecoms reseller, Altech Autopage Cellular, that possible retrenchments are not sinister.
He says while the company is looking at reducing its headcount in the operation, possible retrenchments are par for the course to maintain a strong business. “As the Altech Group, we run a very tight ship, and all the businesses will at one stage or another reduce headcount,” he adds.
Last week, trade union Solidarity raised a stink over the issue, saying the company was “quietly retrenching staff” without consulting with the union's leadership.
However, Solidarity met with the company last week to make sure it will be part of the consultation process. “This meeting was simply to make sure that we can be involved to protect our members,” explained Solidarity spokesman Jaco Kleynhans at the time.
The company sent out the formal notification of retrenchments to employees two weeks ago, and now a 60-day consultation process will follow, according to labour law. Kleynhans says Autopage has assured the union it is investigating alternative growth opportunities; however, he is not convinced it will be enough. “It appears that it will be in vain.”
Venter did not indicate how many staff are expected to be affected by the possible retrenchments. However, he says all due processes have been and will continue to be followed.
The planned retrenchments will come as a surprise to many industry watchers, since the company's performance, reported as part of parent company Altron's financials recently, were strong. Altech, as a group, accounts for 39% of Altron's revenue and 65% of its operating profit.
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