Parmalat has confirmed that it’s going to start restructuring its distribution mannequin, a transfer that threatens the roles many employees.
As reported by Sowetan Reside, the manufacturing firm wouldn’t be swayed into revealing the precise variety of employees whose jobs are on the road.
Nonetheless, they did point out that this was a essential change to save lots of the enterprise.
Why is Parmalat retrenching workers?
Parmalat had warned of at the present time again in January. Coming into a brand new monetary 12 months, the manufacturing firm’s revenue margins have been thinning and choices needed to be made.
Minimising output by letting go of manufacturing facility employees and different workers at their vegetation would solely damage them. So, the corporate revealed that as of Might, it might implement a brand new distribution mannequin.
This concerned partially outsourcing components of its distribution community to a third-party supplier.
The cited publication indicated that in Polokwane, Nelspruit, Upington and George, Parmalat has already handed over its distribution service to an unknown third-party agent.
The corporate additionally revealed that in alternate, the distribution companies utilized in Centurion, Cape City, Durban, Port Elizabeth and East London could be returned to Parmalat.
“To minimise enterprise threat, Parmalat SA has opted to, for now, return all of the distribution companies from distribution centre’s again to Parmalat, and to proceed with the outsourcing of the remainder of its distribution community in accordance with the brand new working mannequin that has already been carried out,” the corporate stated in an announcement.
What number of jobs might be misplaced?
Parmalat indicated that there’s a probability that this restructuring will end in job casualties in its distribution sector in Polokwane, Nelspruit, Upington and George.
Nonetheless, when probed concerning the precise determine, the corporate wouldn’t budge. The producer of dairy merchandise joins a prolonged checklist of firms in South Africa which have begun the method of shedding its workforce to remain afloat.