The SABC is contemplating retrenchments.  However this will take place in consultation with unions.

The broadcaster says its salary bill is too high and needs to be cut.

However, the Communications Workers Union and Bemawu have rejected the proposed retrenchments. Bemawu wants executives and senior management to take a salary cut instead.

Management addressed workers on Friday morning to discuss the reasons behind the proposed staff cuts.

The SABC it said is simply not generating enough money, saying its annual expenditure exceeds R7 billion and the total revenue it generated is around R6.6 billion

That leaves a shortfall of R620 million, thus putting its finances in the red. This is in part informed by the broadcaster’s salary bill.

There’s still no clarity on how and when the retrenchments will take place.

SABC CEO Madoda Mxakwe says:”It will be difficult to give numbers because all of those details will be discussed when we engage with the leaders of organised labour in terms of best practice for fully functioning organisations, the ratio of revenue to expenditure when it comes the salary bill is about 30% and currently at the SABC it’s sitting at about 50%.”

A new operating model is in the pipeline, the details will be made known by the end of September.

The SABC will also provide more clarity on section 189 of the Labour Relations Act.

Group Executive for Human Resources Jonathan Thekiso says:”What are the key reasons behind the retrenchments, this must be explained, then a clear definition of the number of positions that are to be affected then the employer must express to the union.”

Unions will be seeking legal options. CWU has lambasted the move and have rejected any proposal that relates to retrenchments.

Instead it is calling the public broadcaster to convert freelancers into permanent employees.

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