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Retrenchments loom in the platinum belt (Plus two alternatives to retrenchments)

by , 27 June 2014
On Monday, the Association of Mineworkers and Construction Union (Amcu) officially declared an end to the five-month strike in the platinum belt.

While workers have started going to work, confusion reigns over the signed agreement with platinum producers.

Eye Witness News reports that Amcu president, Joseph Mathunjwa, told his members that all three platinum producers had given an undertaking to refrain from restructuring to ensure stability. But Anglo American Platinum says it never agreed to halt restructuring plans in the agreement.

Now the big question is: Are there no alternatives to the looming retrenchments?

Read on to discover the two alternatives you should consider when it comes to retrenchments.

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Here are two alternatives to retrenchment

Experts behind the Labour Law for Managers Loose Leaf Service say the Labour Relations Act compels you to look carefully at ways and means of avoiding retrenchment:

This could include finding your employee:

#1: Another job elsewhere in the company or group.

#2: A lesser job with a lower package.

You may also have to consider offering alternative positions to employees with long service even if that means retrenching other employees who currently occupy those positions, say our experts.

This process is called 'bumping'. The principle behind bumping is that it gives greater job security to employees with longer service.

Just remember that you don't necessarily have to bump if you can come up with a good reason why it doesn't make business sense to do so.

PS: There's just so much more you need to know when it comes to retrenchments. So check out the Labour Law for Managers Loose Leaf Service for more information on the topic – you'll even discover what to do in a situation where you offer your employee an alternative job and he refuses to accept it.

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