Today's Labour News

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newsBusiness Report writes that Ster-Kinekor has confirmed that it has been forced to issue retrenchment notices to 236 employees as it restructures its business and streamlines costs due to dwindling attendance numbers at its SA cinemas, coupled with other challenges.

The cinema group said all staff members had been issued with notices informing them of the company’s intention to proceed with a restructuring exercise under Section 189 of the Labour Relations Act. “In recent months, the business has suffered a significant decline in attendances. This is largely as a result of a challenging economic environment, prolonged and more intense load shedding as well as the impact of the Hollywood actors’ and writers’ strikes,” the company advised. The Hollywood strikes in 2023 resulted in content scheduled for release in 2023 and 2024 being moved to 2025. The company said it was also being hobbled by intensified load shedding and a poor macro-economic environment locally and that it needed its cinemas to operate on streamlined structures. The retrenchment of 236 employees comes a few months after the company, now managed by UK based Blantyre Capital and Greenpoint Capital, exited business rescue. Although Ster-Kinekor has blamed load shedding for its operational challenges, employees at the company are concerned that this is a misrepresentation as most of the operator’s cinemas have back-up generators. Moreover, there has been an improvement in electricity availability in the past few months.

  • Read the full original of the report in the above regard by Tawanda Karombo at Business Report

Get other news reports at the SA Labour News home page