Deal sets scene for more job losses at Sasol

Trade union Solidarity has tempered its tough talk on Sasol after striking a behind-the-scenes deal that lays the groundwork for job cuts throughout the company.

Last week, Solidarity's head of energy Deon Reyneke called on Sasol not to commence its restructuring process before consulting with the union.

Reyneke said Sasol was breaching the Labour Relations Act by not consulting first, and threatened legal action.

Last month, Sasol announced plans to embark on a new restructuring plan called Project Phoenix, which involved about 200 of its top brass being laid off. Solidarity said more than 1500 people had taken voluntary-severance packages since Sasol's Project Phoenix started.

But on Wednesday this week, Sasol issued a section 189 notice on the process.

"Given where we are in this process, we deemed it the appropriate time to issue [the] notice to our representative trade unions," said Sasol spokesman Alex Anderson.

But Reyneke this week struck a more conciliatory tone, and cited a "positive" meeting with Sasol.

Anderson said Sasol held three discussions with the leadership of its representative trade unions on its plan to respond to the low oil price.

"[We have] used the opportunity to further optimise our top management structure. As a result, Sasol reduced the group-executive committee positions from 10 to nine and the number of senior vice presidents by five," he said.

Anderson said the company believed the impact would be "contained to senior management".