Trade union Solidarity this morning said it has managed to avoid the retrenchment of staff members at the state-owned Technology Innovation Agency (TIA), following "intensive consultation".
In September last year, the company instigated a retrenchment process affecting as many as 75 of its 193 employees.
Jahni Cowley, sector coordinator of the professional industry at Solidarity, says the section 189 process at TIA has been successfully concluded and the company does not foresee any further retrenchments in the near future.
"Of the 30 Solidarity members affected by the process, 29 have retained their positions while only one member accepted a voluntary severance package. To date, there have not been any forced retrenchments," says the union.
During consultations with the TIA, Solidarity says it made several suggestions to place the company on a path to return to growth and performance.
"By finding alternative solutions, it has once again been proved that economic setbacks do not necessarily have to lead to the retrenchment of employees. The trade union's strategy was aimed at limiting the layoffs to a minimum," Cowley said.
"Through constructive and meaningful negotiations, Solidarity was able to limit the impact of the retrenchments on its members without risking the survival of the company."
During negotiations last year, Cowley stated the union was given access to the TIA's consultants, who would help create a global picture of the company's structure and present it to the board.
The TIA has seen much internal turmoil during the past year, and is now being overseen by Dr Rivka Kfir, who was appointed as interim CEO in May last year. This followed the dismissal of CEO Simphiwe Duma and CFO Barbara Kortjaas for misconduct and maladministration, uncovered by a forensic investigation.
Adding to the agency's woes is the fact that its funding has been slashed by R130 million - to about R400 million - in the latest medium-term expenditure framework published by government, and market watchers have commented it has not been able to fulfil its mandate.
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