SABC’s management stuck to its guns on Wednesday stating that it will proceed with job cuts at the embattled public broadcaster, affecting at least 400 employees, despite objections by the government, MPs and labour unions.
“We reiterate that, while this decision was not an easy one, it is regrettably a necessary one for the long-term sustainability of the SABC. An insolvent SABC serves no one, not our employees or our citizens who rely on the SABC for transparent, fair and ethical public broadcasting services,” CEO Madoda Mxakwe said in a statement.
The broadcaster, which remains the main source of news and commentary for many South Africans, initially announced that it had issued a notice of possible redundancies in June.
This was met with strong opposition by some MPs, communications, telecommunications and postal services minister Stella Ndabeni-Abrahams, and worker representatives, who questioned the lack of consultation and the skills audit.
Ndabeni-Abrahams told parliament in August that the SABC board had been advised to suspend its resolution on retrenchments to make room for due process and proper consultations with relevant stakeholders. She has previously suggested that retrenchments should be off the table.
Like many other state-owned entities (SOEs), the national broadcaster has been in a financial mess for several years, often requiring government bailouts to continue operating. It has an unsustainable wage bill, spending more than R3bn a year on the salaries of more than 3,000 permanent employees.
It received a R3.2bn bailout from the government late in 2019, which it used to pay off most of its debt.
With advertising revenue plummeting due to the coronavirus-induced economic crisis, it expects a budget shortfall of at least R1.5bn in the 2020 financial year.
SABC management said on Wednesday that the cuts would affect 400 employees, down from 600, which was projected when the process was initiated in June.
Retrenched employees would be prioritised should job opportunities arise. There are approximately 170 vacant positions for which employees can apply, which could reduce the number of affected employees to 230.
Other deep cost-cutting measures that will be considered include freezing salary increases for three years and reducing paid leave days.
The Communications Workers Union (CWU), one of the main unions at the public broadcaster, said it was still studying the documents sent by the SABC.
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