Cape Town, South Africa.
PetroSA, South Africa’s National Oil Company, is reorganizing its business in order to enhance operational efficiencies in the midst of challenging market conditions, to ensure its survival and sustainability.
This has been caused by an ongoing feedstock challenge at PetroSA’s Mossel Bay Refinery that has seen the company operate at sub-commercial levels. Like many other entities that operate in a global space, PetroSA has also not been immune from the impact of external factors such as the slump in the oil price and the resultant declining revenues.
PetroSA is also nearing the completion of a cost optimization project that aims to realise R1 billion recurring savings from its operational costs.
The Labour Relations Act (LRA) requires that companies that employ more than 50 people issue a contemplation letter in line with Section 189A of the LRA, where an impact on employees is contemplated or no longer avoidable. As a result trade unions have been informed through Section 189A of the LRA. In the contemplation letter PetroSA is inviting labour to engage with it in a meaningful joint consensus-seeking process where measures to avoid, minimize and mitigate the adverse impacts of possible head count reduction will be explored. The letter is intended to formalise the engagement process due to commence in April 2015.
PetroSA is committed to its values of honesty and transparency which underpin engagements with all its stakeholders. This is a sensitive period and PetroSA will ensure that this is treated with the utmost respect and dignity for the benefit of all employees.
Further developments on this matter will be communicated to relevant stakeholders in due course and in line with the stipulated process.
For more information, please contact:
Group Communications Manager