Today's Labour News

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sabcBusinessLive reports that the loss-making SA Broadcasting Corporation (SABC) says no lender is prepared to do business with it amid a severe cash crunch that could result in the public broadcaster failing to pay salaries and service providers in the coming months.  

The broadcaster said this was owing to its disclaimer audit opinion and the fact that the auditor-general had raised doubts about its going-concern status.  The broadcaster told members of parliament’s communications portfolio committee on Tuesday that retrenchments were unavoidable, despite objections by the government, labour and MPs.  The planned job cuts are likely to affect close to 1,000 permanent employees and 1,200 freelancers.  The SABC indicated that it needed a cash injection of at least R3bn to stay afloat and possibly avert retrenchments.  In September, the broadcaster, which recorded a staggering loss of R622m in the financial year ended March, was granted borrowing powers and a borrowing limit of up to R1.2bn by the Treasury.  But, banks were not willing to take the risk of lending money, said SABC CEO Madoda Mxakwe.  Consultations were still ongoing with organised labour in terms of minimising job cuts, said board chair Bongumusa Makhathini.

  • Read the full original of the report by Bekezela Phakathi at BusinessLive
  • Read too, SAA’s most-pressing issue is borrowing money to pay December salaries, at BusinessLive

Get other news reports at the SA Labour News home page