Are you thinking about retrenchments? Then FIRST consider these 10 points
As reported on Independent Online, the South African mining company, Sibanye, warned recently that its profits may be hit hard.
This is as a result of lost production, due to the labour disruptions caused by wage negotiations earlier this year.
The mining group already reported that operating profit, for the quarter ending September, fell to R1.59 billion from R1.78 billion as compared to a year ago.
Now, as many know, when a company is seen as not performing, retrenchments may be on the cards. If you're the owner of such a company, your shareholders might very well insist that you 'cut costs' in order to show a better profit, so they can see better returns on their investments.
At the end of the day, if you opt for the retrenchment route, not only should you have a very good reason for it, but you should also seriously consider the following 10 points first:
What do you want to achieve by retrenching
Was is the best plan to get there?
Does your plan relate to what you wish to achieve?
Do you have facts and figures to back up your plan?
Are those facts and figures accurate? And would you be able to able to substantiate them, if anyone queries them?
How many employees do you see being retrenched? Is it a large-scale retrenchment
? If so, you must consider all the implications and time frames.
How do you plan on selecting employees you'll retrench? Does that selection process fall in line with your strategy?
When do you want to implement the retrenchment process? And why would that timing make business sense?
What do you propose paying as a retrenchment package? And exactly how much will all of this cost you?
What other assistance would you be able to offer your retrenched employees?
As you can see, there's a lot of thinking to be done before even seriously considering retrenchments. On top of that, there are countless legalities you should be familiar with. Otherwise, if you don't, your retrenched employees can easily take you to the CCMA! And you don't want that.
So, to learn more, in order to ensure that your retrenchment plans are solid and legally-compliant, get your hands on Retrenchments: How to make sure your retrenchment process is 100% correct,
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