Coca-Cola Beverages South Africa (CCBSA) is considering cutting up to 680 jobs and shutting some of its plants, Business Tech reports.
The company confirmed on Thursday that consultations with workers and unions are underway but that no final decisions have been taken.
The Food and Allied Workers Union (FAWU) told the SABC it had received a formal notice from CCBSA of a section 189 retrenchment process. The process could affect nearly 9% of the company’s 7,700-strong South African workforce, with most of the job losses expected among cleaning staff.
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According to FAWU, CCBSA plans to close facilities in Bloemfontein and East London as part of its restructuring. The union argued that cleaning staff are essential to maintaining food and beverage production standards and vowed to oppose the retrenchments.
The SABC, which has seen the notice, reported that the company is offering separation packages to employees as an alternative to “forced separation.” FAWU, however, contends this approach is unlawful, as the offers were made before proper consultation with unions.
“Retrenchments cannot be pushed through without meaningful engagement,” the union said, adding that it will challenge the move.
If confirmed, the cuts would place CCBSA among a growing list of multinational companies scaling back operations in South Africa amid tough economic conditions.
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