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SowetanLive reports that Parmalat has embarked on a restructuring process that could leave hundreds of its workers in the distribution section of the company jobless.
In January the company announced a process to change its distribution model and implementation began in the middle of May. According to the company, the new model involved partially outsourcing components of its logistics distribution network to an external provider. Distribution services in Polokwane, Nelspruit, Bloemfontein, Upington and George have already been outsourced to an external service provider, while those in Centurion, Cape Town, Durban, Port Elizabeth and East London outsourced to the provider will return to Parmalat. "To minimise business risk, Parmalat SA has opted to, for now, return all the distribution services from distribution centre's back to Parmalat, and to continue with the outsourcing of the rest of its distribution network in accordance with the new operating model that has already been implemented," the company indicated. It did not answer questions on the number of workers who were likely to lose their jobs due to the implementation of the new distribution model. The diary products producer joins a long list of companies in various sectors that have announced restructuring involving job cuts, including MultiChoice, Standard Bank, the Absa Group, Tongaat Hulett and Lonmin.
- Read the full original of Penwell Dlamini’s report on this story at SowetanLive
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