Retrenchments loom at PPC Botswana

PPC Botswana has warned its employees that a restructuring exercise to streamline for efficiency that may result in retrenchments is underway. “We confirm our intention as PPC Botswana to review our organisation structure, which creates a distinct possibility that some positions may fall away,” the company says in a letter to Botswana Mine Workers Union (BMWU). [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="1" ] But a confrontation with the union seems unavoidable. BMWU is reportedly preparing for a fight with PPC Botswana over what it considers violations of labour laws even though the company has cited Section 25 of the Employment Act in justification of the course it is taking A letter dated 1 st November addressed to employees from PPC Botswana’s Head of Business Unit, Tuelo Botlhole, refers to details of a proposed organisational review, its rationale and the process to be followed prior to management taking a final decision being shared with the union at a meeting of the day of the letter. According to the letter, PPC Botswana “has undertaken a review of its structure with the aim of cutting costs and enhancing operational efficiencies and making the business more competitive by reducing and maintaining affordable unit costs”. The letter notes that to give effect to the cost-cutting measures, the company considered reduction of salaries and hours of work among several options. “But these were not considered as viable options based on the impact it could have on employee morale and on productivity,” says Botlhole in the letter. Consequently, says the letter, the organisation has taken a preliminary decision to review its structure for the purpose of cutting costs and achieving better operational efficiencies. “Our intention is to carry out this exercise in a fair and transparent manner and in accordance with requirements of the law,” the letter notes. To that end, “we confirm our intention as PPC Botswana to review our organisation structure, which creates a distinct possibility that some positions may fall away,” the letter warns and says this is in accordance with Section 25 of the Employment Act that places an obligation on employers to consult meaningfully with employees likely to be affected. “The meeting held on 1 st November 2022, therefore marked the commencement of consultations with yourself,” says the letter. “Following above meeting, you are invited to make representation on any other viable alternatives to achieve operational efficiencies while achieving the objectives of cutting costs and achieving operation efficiencies.” PPC Botswana then proposes another meeting with BMWU on 14 November to discuss alternatives presented by the union but warns that retrenchments may still remain an option. In such an event, the letter speaks of criteria to be used in retrenchments and ways and means of alleviating hardships “which include a separation package or alternative employment where possible”. In the event retrenchments become unavoidable, PPC Botswana proposes 30 November 2022 as the date of effecting them. Meanwhile, the union has responded by saying “the tone of the letter clearly shows that something is amiss”. Signed by the Secretary General of BMWU, Maenge Maenge, the letter notes: “You can’t call employees on the 1 st November 2022, give (an) ultimatum for the 14 th November 2022 as the last determining so-called consultation with the 30 th November 2022 as the separation date. “You further mentioned that there are 13 employees whose contracts will be terminated end of November 2022 while on the other hand purport to be consulting.” Further, Maenge’s letter also wants to know how PPC Botswana reached “the number 13 before the engagement process and what criteria was used to guide your resolve? Which category of employees are the 13 coming from?” The union then calls on PPC Botswana to “set aside your illegitimate plans to retrench and rather schedule proper meetings whereat the parties will engage meaningfully to explore possible means of averting the retrenchments and more importantly negotiate a retrenchment package as a remedy for the worst-case scenario.” [/ihc-hide-content][ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="1" ][/ihc-hide-content]

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Retrenchments loom at PPC Botswana

Confrontation seems inevitable as PPC Botswana prepares to retrench at least 13 employees before Christmas in a course of action that Botswana Mine Workers Union says is in violation of Botswana’s labour laws

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Retrenchments loom at PPC Botswana

Confrontation seems inevitable as PPC Botswana prepares to retrench at least 13 employees before Christmas in a course of action that Botswana Mine Workers Union says is in violation of Botswana’s labour laws

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