CURTAINS will soon close on employees at one of South Africa’s biggest cinemas, Ster-Kinekor cinemas
This after it was alleged that more than 200 employees will face retrenchment.
An employee facing retrenchment revealed this to Daily Sun on Tuesday, 16 April just a few more days before the process is finanlised at end of April.
Speaking to Daily Sun, the 50-year-old employee said he was worried that given his age, he might struggle to find another job.
According to the employee, they were informed in February that the business wasn't doing well financially and as a result would have to cut down on costs.
Some of those solutions meant laying off staff.
The employee said some were given voluntary severance packages (VSPs) while others were given an opportunity to undergo assessment if they were fit enough to stay, however, that option would mean that they would be moved to another province.
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“Some staff had been offered VSPs which some took but guys like us never accepted. We're now writing tests and whoever passes will be assessed to determine if they are going to keep them or not,” the employee said.
While there's a chance of staying in the company, the employee said these assessments were merely just “masks which will ultimately see those on the board level being brought in instead of them”.
In a statement issued to Daily Sun, Ster-Kinekor Theatres confirmed that on 13 February 2024 they issued a notice to all staff informing them of the company’s intention to proceed with a restructure under Section 189 of the Labour Relations Act (LRA), and to begin the consultation process.
According to Ster-Kinekor in recent months, the business' finances suffered a dip as a result of, among other things, intense load shedding.
“The business has suffered a significant decline in attendances. This is largely as a result of a challenging economic environment, prolonged and more intense load shedding as well as the impact of the Hollywood actors’ and writers’ strikes, where content scheduled for release in 2023 and 2024 has been moved out to 2025.
“As these are forces largely out of the business’ control and the financial impact is likely to endure for some time, Ster-Kinekor Theatres has had to review its cost structure to ensure the continued survival and sustainability of its business,” the cinema said.
As the process of restructuring continues, Ster-Kinekor said it is committed to complying with all the legal requirements and will also ensure that employees are kept informed.
