The Star reports that trade unions have called on the Public Investment Corporation (PIC) to rescue South Africa’s largest trading group, Edcon, from its financial woes to avoid a jobs bloodbath.
This comes after a report emerged at the weekend detailing how the retail giant was on the brink of collapse.
Cosatu parliamentary co-ordinator Matthew Parks yesterday warned that the massive job losses would not only affect Edcon.
“We want no job losses. We are saying there is space to make a plan. This is not just job losses at Edcon but also to factories that supply them. We support the engagements between the management and stakeholders to find a way out of this crisis.
“We think the PIC can and it should. This must obviously be done in a sustainable way.
“The PIC cannot be handing out money, because its mandate is to grow and protect public servants’ pension money.
“It is, however, up to the PIC to decide on this,” said Parks.
A report by the Sunday Times newspaper stated that Edcon had sent out a letter to its 31 biggest landlords asking for a two-year 41% “rent holiday” in exchange for a 5% stake in the business in a bid to stave off liquidation and the loss of up to 140000 jobs.
The paper reported that Edcon was seeking R2billion in emergency funding from its owners and the stateowned PIC.
The retail giant operates 1 350 stores, which include CNA, Edgars and Jet.
South African Federation of Trade Unions general secretary Zwelinzima Vavi said: “Liquidation must be the last resort at all times. It should be the last thing to consider. I think we don’t have an option but to find a way of rescuing the company. “The government must work with the management and unions to avoid job losses. I don’t know what this discussion may involve, but all I know is that government cannot just sit and do nothing about this,” said Vavi.
The retail giant is not the only company to cut jobs in the country.
Ndalo Media, the SABC and Afro WorldView are among companies that announced major job losses in 2018.
On Monday, Edcon chief executive Grant Pattison said the group was not collapsing as suggested by the report, but was engaged in talks to prevent job losses.
“Edcon’s balance sheet recovery programme has been under way for some time as we continue to focus on completing a recapitalisation of Edcon.
“Part of the process is the continuing discussions with various stakeholders, which include lenders, landlords, potential new investors and others, as we explore and discuss various options,” said Pattison.
The original of this report by Mary-Jane Mphahlele appeared on page 10 of The Star of 19 December 2018
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