Trade union Solidarity says Gijima has wrapped up its retrenchment process and no more staff will be let go.
In May, Gijima said it would trim between 8% and 12% of its R1 billion-a-year staff bill through retrenchments, as it faces declining revenue because of lost deals and increasing costs. Of the 700, some 200 people have been retrenched and the balance moved to Absa, after it in-sourced more than half the contract it previously had with Gijima.
The union says Gijima had planned to retrench another 200 staff by the middle of the year, but the process has been wrapped up. Solidarity adds that none of its members were retrenched, “thanks to intense consultations” with Gijima.
Gijima CEO Jonas Bogoshi said in a May statement that changes in the global market and pricing pressure meant it had to reassess its business operating model and restructure it to make it relevant. “Our aim is to enhance our business competitiveness.”
However, an internal e-mail, in ITWeb's possession, revealed that Gijima had to “optimise our resource capability and utilisation” to remain competitive, “particularly in light of the loss of the SAPS [South African Police Service] contract for desktop computers and Barclays' decision to in-source more than half of our contract with Absa”.
Solidarity spokesman Moira-Marie Kloppers says the process has been wrapped up and no further retrenchments are expected. Gijima did not respond to a request for comment.
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