City Press reports that SA Football Association (Safa) has begun a section 189 process as the embattled organisation plans to implement retrenchments on a major scale, citing operational cost-cutting.
This was indicated in a letter of 10 June addressed to staff members. Safa noted that it had been experiencing financial difficulties over the past three years: “In the 2018 financial year, we reported a loss of R18 million and in 2019, we reported another loss of R74 million. Simply put, we have spent R92 million more than the money we had.” The association went on to list the challenges faced by its sponsors, particularly during the Covid-19 pandemic. “As advised before, the association has no alternative but to reduce the current annual salary bill by at least R20 million to avoid bankruptcy and repercussions from our sponsors,” Safa advised. The letter came on the heels of proposals from a staff task team agreeing “to salary cuts, as we don’t want anyone to lose their job”. However, the plea fell on deaf ears, as Safa went ahead and issued the letter, which further stated that the organisation would consider offering voluntary severance packages. Safa spokesperson Dominic Chimhavi said: “All employees and all the job categories are affected because the old structure will be disestablished and the new structure will come into operation.
- Read the full original of the report in the above regard by Timothy Molobi on page 20 of City Press of 14 June 2020
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