Fin24 reports that retrenched CNA employees have yet to be paid out more than a year after being served with section 189 notices.
The payment delay follows a disagreement between CNA and the SA Commercial, Catering and Allied Workers' Union (Saccawu). The company issued all its employees with retrenchment notices in February 2021 and severance packages were originally set to be paid before the end of December 2021. CNA fell into a financial crisis just one year after new owners took over the company in 2020. At the time, investment company Astoria had a 70% stake in the retailer, while former CEO Benjamin Trisk held 30%. CAN was then sold to Black Mountain Investment Management and AngloWealth's Everland for R2 million. It is that R2 million, however, that has held up payments to retrenched employees, because the proceeds of the sale would have made up their severance packages. Saccawu has rejected the offer, saying there was no clarity on how the parties had arrived at an offer of R2 million, which did not meet the workers' expectations. According to the union's spokesperson, Sithembele Tshwete, the business rescue process has not resolved the issue. "While waiting for the BRP [business rescue plan] to conclude, the union is busy consulting with workers and exploring legal interventions to reach amicable solution to this impasse," he advised. Business rescue practitioner Stefan Steyn expressed sympathy for the retrenched workers, saying Business Rescue Partners had hoped to have the payments finalised sooner. Steyn explained that the hold-up was due to delays in agreements being finalised. "We are waiting for Black Mountain [and] Everland to give us an indication on the timing of these payments and will revert shortly," he indicated. With regards to the business rescue process, Steyn explained that it would be terminated "shortly".
- Read the full original of the report in the above regard by Penelope Mashego at Fin24 (subscriber access only)
Get other news reports at the SA Labour News home page