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News: Massmart starts consultation with labour over possible job cuts at Game stores

News: Massmart starts consultation with labour over possible job cuts at Game stores

The Massmart Group says it has completed an assessment of opportunities to improve its South African Game store efficiencies and is now looking at possible job cuts.

In a shareholder statement on Tuesday (7 July), the group said that this will include a consultation process in terms of section 189 and section 189A of the Labour Relations Act with organised labour and other relevant stakeholders.

Section 189 of the act governs, among other things, the procedures that companies must be take ahead of any possible retrenchments.

This process may potentially affect 1,800 employees in Game stores in South Africa, it said.

In March, Massmart said that it will close all of its non-performing stores, as cash-strapped consumers battle with high unemployment, modest wage increases and higher average fuel and utility prices.

This included the closure of 23 Dion Wired Stores as well as a number of Masscash stores.

The move marked the first significant act by Massmart’s new chief executive officer, Mitchell Slape, who arrived from Wal-Mart in September with a brief to turn around the retailer.

As of March, Massmart had a total of almost 450 stores across 13 countries in sub-Saharan Africa and about 48,500 full-time employees.

In addition to Game, Massmart owns Makro, Dion Wired, Builders Warehouse and Masscash.

 

Source: BusinessTech, News24

Photo Credit: Gallo Images/Papi Morake


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