The Road Accident Fund (RAF) has issued a notice of retrenchment which may see it lay off about 400 employees.
Last week, the company issued section 189 notices to employees, informing them it will embark on a consultative process with staff to start the retrenchment process based on operational requirements.
“The organisational structure review and implementation of an integrated claims management system are key objectives of the RAF’s 2020-2025 strategic plan to ensure a transformed and sustainable RAF. The previous operating model has proved to be unsustainable and did not enable the organisation to carry out its legislative mandate effectively,” reads the letter
The proposed effective date for retrenchments is November 31.
Numsa spokesperson Phakamile Hlubi-Majola said the union had been engaging the RAF and workers on the proposed retrenchments since June.
“Numsa does not support job cuts at the RAF and will do whatever is necessary to save jobs.
“The RAF says it is contemplating retrenching about 400 workers out of a staff complement of 3,000.
“We are waiting for the CCMA to set a date so the process can formally begin. That date has not yet been announced,” she said.
The RAF had not responded to questions sent to them on Tuesday at the time of publishing. The story will be updated with their comment once received.
TimesLIVE
RAF issues notice to retrench, union says 400 staff at risk
The Road Accident Fund (RAF) has issued a notice of retrenchment which may see it lay off about 400 employees.
Last week, the company issued section 189 notices to employees, informing them it will embark on a consultative process with staff to start the retrenchment process based on operational requirements.
“The organisational structure review and implementation of an integrated claims management system are key objectives of the RAF’s 2020-2025 strategic plan to ensure a transformed and sustainable RAF. The previous operating model has proved to be unsustainable and did not enable the organisation to carry out its legislative mandate effectively,” reads the letter
The proposed effective date for retrenchments is November 31.
Numsa spokesperson Phakamile Hlubi-Majola said the union had been engaging the RAF and workers on the proposed retrenchments since June.
“Numsa does not support job cuts at the RAF and will do whatever is necessary to save jobs.
“The RAF says it is contemplating retrenching about 400 workers out of a staff complement of 3,000.
“We are waiting for the CCMA to set a date so the process can formally begin. That date has not yet been announced,” she said.
The RAF had not responded to questions sent to them on Tuesday at the time of publishing. The story will be updated with their comment once received.
TimesLIVE