Sappi retrenchments loom

13 December 2011 - 02:29 By I-Net Bridge
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Pulp and paper group Sappi said yesterday that the ongoing restructuring within its South African operations might include retrenchments at some production plants.

The Chemical, Energy, Paper, Printing, Wood and Allied Workers' Union revealed that the company intended to cut more than 1200 jobs by February/March as part of the overall restructuring process.

But Sappi spokesman Andre Oberholzer said the union's figures were premature, noting that talks in this regard were still to be held under the auspices of the Commission for Conciliation, Mediation and Arbitration at a date yet to be decided.

Ceppwawu said that a specified number of workers at Sappi Enstra Plant (Gauteng), Sappi Tugela (KZN), Sappi Saiccor (KZN), Sappi Stanger (KZN) and Sappi Ngodwana (Mpumalanga) would be retrenched.

"At no stage has the Sappi executive involved the union in discussions or consultations about the overall restructuring and repositioning of Sappi," the union said.

But Oberholzer said the company had consulted all the unions in a "detailed process" since last year.

The other unions are Solidarity and the United Association of SA.

The company said the restructuring of its business processes and paper operations in South Africa would lead to a significant additional reduction of jobs during the first half of the next financial year.

Oberholzer added that staff at its support services, which included human resources, finance, procurement and communication, might be retrenched.

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