SI restructuring – jobs on the line

SUN International has
announced that about
1 700 positions in its
South African operations might
be affected by a possible
restructuring of the business.
This is based on an initial
assessment, which is still
subject to a consultation
process. The company has
commenced the process, in
line with the Labour Relations
Act, with organised labour and
other relevant stakeholders.
“In the current environment
we have no choice but to
propose the restructuring
of the business,” said Sun
International ceo, Graeme
Stephens. “Retrenchments,
if applicable, would be a last
resort for us and certainly not
a decision that would be taken
lightly.” The announcement
follows an extensive review of
its operations in South Africa,
which focused on increasing
efciency and productivity and
also improving revenues and
protability.
The company said it was
experiencing increasing
pressure on revenues along
with growing operating costs.
Over the past six years,
revenue from the group’s SA
operations has increased by
17% while EBITDA declined by
2%. The company attributed
this to escalating costs,
pointing out that over the
same period, employee costs
had risen by approximately
39%, while the minimum wage
had increased 47%.