POLOKWANE – Great North Transport (GNT) is facing what could be its biggest crisis yet, with jobs on the line after the state-owned bus company began a formal retrenchment process, prompting the DA to demand urgent answers from Provincial Government.

The DA confirmed on Friday that GNT had issued a Section 189 notice in terms of the Labour Relations Act, formally initiating consultations on possible retrenchments.

A Section 189 notice is the legal process employers must follow before retrenching staff. It requires employers to disclose the economic or operational reasons for the proposed job cuts, consult with employees and organised labour, consider alternatives to retrenchment, negotiate severance packages, and explain the criteria that would be used to select affected employees.

DA blames years of mismanagement

The DA says the move is the result of years of financial mismanagement and governance failures at the provincial bus operator.

“Employees must not be made to pay the price for years of financial mismanagement and governance failures,” said DA spokesperson for economic development, Jacques Smalle.

The party has called on the Department of Economic Development and GNT’s interim accounting authority to urgently appear before the Legislature’s economic development portfolio committee to explain the financial and operational reasons behind the proposed retrenchments and outline what alternatives were considered to avoid or minimise job losses.

Warnings date back years, DA says

“For years, the DA has warned that GNT’s deteriorating financial position, operational instability and governance failures would ultimately threaten both the sustainability of the company and the livelihoods of its employees,” Smalle said.

The DA also wants clarity on whether GNT’s turnaround strategy has failed, why the Legislature was not informed earlier, and whether the proposed retrenchments form part of a properly costed recovery plan or are merely a short-term solution to deeper financial problems.

“Retrenchment must be a measure of last resort. The consultation process with organised labour must be conducted with full financial disclosure and genuine consideration of every reasonable and viable alternative,” Smalle added.

GNT holds off on comment

GNT spokesperson Leo Gama said the company could not comment on the process at this stage.

“At this stage GNT is not in a position to pronounce its future plans regarding the Section 189 notice. We will, at the right time, communicate with the public regarding the notice. GNT is currently focusing on improving its public transport services throughout the province,” Gama said.

Unions consulted on voluntary packages

The company has not disclosed how many jobs could be affected or whether any bus routes may be reduced.

Sources close to GNT, however, said management is consulting labour unions and exploring voluntary retrenchment packages. Large-scale job losses or reduction in services could have far-reaching consequences for employees and the communities that rely on the bus operator every day.