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Independent Newspapers issues retrenchment letters as it struggles to stay afloat

Independent Newspapers issued Friday retrenchment notices to employees, informing them it will embark on a consultative process with staff to start the retrenchment process as it's to make redundant approximately 115 positions.

Johannesburg – Friday was a very cold and gloomy day.  

Just when the editorial staff at Independent Newspapers thought things couldn’t get any more miserable, management struck them with what could be an employment knockout blow – retrenchment letters.

The six-page retrenchment letter seen by thebulrushes.com, where this article was originally published, was e-mailed to editorial staff, many who do not work on a Friday.

The newspaper group, which owns the 136-year-old The Star, admits in the dreaded retrenchment letter that it had been struggling to stay afloat for the last three years. Rising printing costs, shrinking advertising, reader exodus to digital platforms and Covid-19 were to blame in various degrees for the decline of the ancient establishment.

The once-glorious newspaper group said it “had reached the point where the company can no longer maintain a high, largely fixed cost structure considering the declining revenue base and evolving operating processes”. 

The retrenchment letters titled “Proposed Restructure in terms of Section 189 (3) of the Labour Relations Act 66 of 1995: Possible dismissal due operational requirements” were sent to affected staff by the Chief Executive Officer Takudzwa Hove.

In the letter, Hove said: “All affected staff will be invited to apply for new positions in the new structures”. He said successful candidates will be selected on the basis of skills, experience, and the ability to work within pressurised environments with demonstrated understanding of multi-media journalism. Hove, however, warned that some positions may “only be available at revised market-related salaries and grades”.

The depressing suggestions were too much to bear for some staff members. “We don’t know and care anymore what happens there,” a disgruntled staffer told The Bulrushes. “We’ve been sad for too long. It’s a relief. It’s like being released from years of slavery.”

Joining a slew of print media titles heavily hit by Covid-19 driven downturn, resulting in continous shutdowns and layoffs, the company said it had 459 permanent staffers and 47 fixed-term employees.

Independent Newspapers said it was envisaged that the consultation process shall take place from 30 June 2023 to 31 August 2023. “The timing of the possible dismissal shall be discussed with the affected staff during the consultation period,” the letter said.

Notice of termination of employment will be given by 30 September. The company said in light of the number of employees who could be impacted by the retrenchment process, “we have elected to request facilitation by the CCMA [Commission for Conciliation, Mediation, and Arbitration]”.

If the company’s proposal is implemented, it is anticipated that a total of 285 positions will be affected, including fixed-term contracts in the following business units:

  • Editorial – Cape Argus, Cape Times, Weekend Argus, Daily News, The Mercury, Independent on Saturday, Sunday Tribune, The Star. Saturday Star, Sunday Independent, Pretoria News, Daily Voice, Isolezwe, Isolezwe NgempelaSonto, and Post.
  • Independent Media Solutions Units (Lifestyle, Business, Politics, Sport, Current Affairs, Audience development, and Studio Independent)
  • Editorial production, Editorial administration (providing shared function), and Photography 

Hove said: “The proposed number of positions to be made redundant is approximately 115”.

– The Bulrushes

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