BusinessLive reports that KAP Industrial, which has automotive, chemicals and logistics businesses, has cut the salaries of some of its employees by 20% for three months to shore up finances during the Covid-19 pandemic.
The cuts will affect employees not covered by collective bargaining agreements. They will also not receive an annual inflation increase for the period between the end of July 2020 and the end of June 2021. The group said negotiations have also been initiated through relevant bargaining council and union structures in a bid to postpone for 12 months wage agreements that have not been implemented. Where wage agreements have been implemented, the company is looking to suspend all non-financial benefits for 12 months. The group did not go into details with regards to how many employees the salary reduction would affect, but according to its 2019 annual report, of its 15,249 SA employees, 56% were unionised. KAP said it was taking the measures to avoid the possibility of mass retrenchments
- Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive
- See too, Senior staff at Ina Paarman Foods take pay cuts of up to 50% to avoid job cuts, at TimesLIVE
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