Massmart’s DionWired to retrench staff
Retail group Massmart is offering 24-hour counselling services to over 1 400 employees who will be retrenched from its flagship stores, DionWired and Masscash.
DionWired is a retailer of electronics devices and appliances.
Massmart says it recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio. Consequently, Massmart has commenced a potential store closure consultation process in terms of section 189 and section 189A of the Labour Relations Act.
A total of 34 DionWired and Masscash stores and approximately 1 440 employees will potentially be affected by the retrenchment process.
Massmart says it has launched a 24-hour helpline to counsel the affected parties.
It says: “As Massmart, we understand that this is a particularly difficult time for our colleagues who are employed in the affected stores. In an effort to provide them with emotional support, we have, as a first step, arranged access to counselling services and a 24-hour support line.”
In a statement issued to ITWeb, Massmart says a final decision is dependent on the consultation process.
However, “if a decision is ultimately taken to close all affected stores then yes, this would result in the closure of DionWired. DionWired currently comprises 21 permanent and two pop-up stores, all of which are potentially affected by this announcement.”
A total of 34 stores, including 23 DionWired and 11 Masscash stores, are affected.
“A final decision regarding the future of these stores will only be taken after we have consulted with the affected associates. To this end, we have suggested appointing an external facilitator to lead the consultation process,” reads the statement.