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MultiChoice halts job cuts, allows CCMA to engage workers

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 26 Jun 2019
MultiChoice Group CEO, blowing the horn when the company listed on the JSE on 27 February.
MultiChoice Group CEO, blowing the horn when the company listed on the JSE on 27 February.

The MultiChoice job cuts have been halted for now, to allow the Commission for Conciliation, Mediation and Arbitration (CCMA) to lead the process, starting with consultations this Friday.

The satellite TV operator last week announced massive job cuts, which it says will affect 2 194 of its employees within its customer care call centre and walk-in centres as part of the strategic realignment of its customer service delivery model.

The unions opposed this retrenchment decision, proposing more engagements between MultiChoice and its workers, with an arbitrator, so that jobs may be saved.

In a statement yesterday, the pay-TV operator said the first consultation meeting, which “will be facilitated by an independent commissioner from the CCMA, will go ahead as planned and there will be further communication in due course”.

MultiChoice, however, says it is comfortable “it has from the outset conducted its restructuring process following all appropriate processes and procedures in accordance with the prescripts of the Labour Relations Act”.

The Labour Relations Act (LRA) allows employers to dismiss employees for reasons of operational requirements (retrenchment); however, the LRA's provisions make the implementation of retrenchment, especially large-scale retrenchments, extremely difficult. Section 189 of the LRA lays down a number of strict requirements, the breach of which would place the employer in hot water.

These provisions require that the employer must have a good reason for the need to retrench, use fair criteria in deciding which employees are to be retrenched, and follow an intricate consultation procedure aimed primarily at seeking ways of avoiding retrenchment.

MultiChoice Group CEO Calvo Mawela says: “We are committed to the intent and the spirit of the Section 189 A process as outlined in the Labour Relations Act, and as MultiChoice leadership we will continue to engage impacted employees across the country during the stipulated consultation period to ensure a reasonable conclusion.”

In the Tuesday statement, MultiChoice South Africa confirmed it has commenced with the consultation process announced last week as part of the video entertainment company’s realignment of its call centre and walk-in centres.

“MultiChoice announced the two sections of the business would be realigned in response to the changing behaviour of its customers, who are increasingly moving away from traditional voice calls and visits to walk-in centres, and adopting new self-service and digital technologies to engage with the company.”

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