Today's Labour News

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DAWNBusiness Report writes that the financially troubled Distribution and Warehousing Network (Dawn) retrenched and terminated the employment of more than 700 employees and labour-broker staff across the group in the six months to September.  

The listed manufacturer and distributor of plumbing and hardware brands, which last week received a firm offer which, if successful, would lead to its delisting from the JSE, said on Friday that the largest portion of the terminations was based on operational requirements.  In November last year, Dawn reported that it had retrenched about 1,300 people in the previous two years, and in that month had handed retrenchment notices to a further 143 people in its Wholesale Housing Supplies (WHS) business.  CE Edwin Hewitt said the group's management and board had decided to close DPI, the group's pipe-manufacturing business, while WHS, its main sanitaryware and hardware trading and distribution business, was restructured further.  He said “crippling strike action” in the plastics industry, which to date had lasted seven weeks, had placed severe strain on the business and the group.  Hewitt also said Dawn continued to face liquidity constraints and, unless there was a material turnaround in the company in the near future, “it faces a looming solvency risk”.

  • Read Roy Cokayne’s original report in this regard in full at Business Report

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