Operations of New Frame put on hold as retrenchments loom

01 July 2022 - 19:02
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The New Frame will publish an editorial on Monday morning. The company which owns the online publication says it has not been able to secure funding beyond September 30.
The New Frame will publish an editorial on Monday morning. The company which owns the online publication says it has not been able to secure funding beyond September 30.
Image: 123RF/OLEG DUDKO/ File photo

The operations of New Frame, a not-for-profit social justice media publication in Johannesburg, will cease on Friday to preserve capital resources for the continued payment of staff.

A retrenchment notice letter seen by TimesLIVE, and addressed to one of the staff members, stated that the Centre for Pan African Media (CPAM) — an NPO which houses New Frame — has not been able to secure funding beyond September 30.

In the letter, the company said it had received grant funding from a variety of international sources since inception.

CPAM said for the last six months, it has received 99.9% of funding from one foundation and now has no other material income streams.

It is now in a situation where it must contemplate embarking on a process that might lead to the retrenchment of all employees of the company.

It said due to a lack of funding, the company’s existing and committed capital resources are insufficient to meet its short to medium-term funding needs.

To ensure the payment of staff salaries is not affected, the activities and operations of CPAM, including New Frame, will cease immediately to preserve capital resources for the ongoing payment of staff for as long as possible by curtailing costs outside salaries.

The letter stressed that no final decisions have been made, as CPAM would like to consult with staff with a view to avoiding retrenchments, changing the timing of any potential retrenchments and/or mitigating the adverse effects of retrenchment.

CPAM employs 25 people and all are likely to be affected.

CPAM said subject to the outcome of the consultation process, the company is considering August 25 as the possible date for the termination to take effect.

New Frame said it was not ready to comment and its editor-in-chief Richard Pithouse said the publication will be running an editorial on Monday morning.

It said it was dealing with a very painful process and currently dealing with staff.

TimesLIVE

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