Today's Labour News

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edconMoneyweb writes that the prospect of more than 100,000 people losing their jobs was grimly tagged by a conference call between Edcon CEO Grant Pattison and suppliers just hours before SA entered its coronavirus lockdown.  

Moreover, the 100,000 job losses will be just a part of the enormous but unknown price that will be paid, largely by the poor and vulnerable, in the coming months.  But the grim reality was that Edcon was a case of dead man walking into the coronavirus lockdown and was in no condition to survive even the very early stages of the virus.  During the conference call Pattison told suppliers Edcon only had sufficient liquidity to pay salaries which were deemed a priority and that the company was unable to honour any other accounts during the lockdown period.  The dramatic statements confirmed speculation that the 90-year old retailer had seen little improvement in operations since the “rescue” that was bedded down less than one year ago.  In June 2019, Edcon put to bed a R2.7 billion rescue package funded to the tune of R1.2 billion by the Public Investment Corporation, with the bulk of the remainder in the form of rent reductions and cash commitments.  Now, Pattison told suppliers that management was continuing to look at all options and “there may be some tough recommendations to be made to the board after the lockdown, including considering business rescue.”

  • Read the full original of the report in the above regard by Ann Crotty at Moneyweb


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