350 Sapref workers to lose jobs
A total of 492 permanent workers were set to lose their jobs, but the final number was reduced.
SAPREF has confirmed that it has signed a retrenchment agreement with its staff after what it called a successful consultation process.
In April, news of the looming staff cuts was leaked to the media, but at the time, the company did not confirm or deny the reports. The company’s talent development manager, Hlengiwe Hlela, said 350 employees are set to lose their jobs.
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“In April 2022, Durban experienced severe flooding which resulted in the Sapref refinery being submerged in up to 3m of water, resulting in extensive flood damage. The flooding resulted in severe damage to the refinery, requiring an intensive capital investment of about 3–5 years’ duration for repair due to damage to long-lead items, which are process-control-room components and electrical substations. Given the 3–5 estimated duration for repairs and uncertainties on the future of the refinery, Sapref took the decision to right-size the organisation,” said Hlela.
She confirmed that the staff consultation process started in October 2022 and was done through the Commission for Conciliation, Mediation and Arbitration (CCMA), labour representatives, as well as the trade union.
“A total of five CCMA facilitation sessions were held, exceeding the legislated four sessions and a 60-day period. The extensive engagement and consultation ended in January. Initially, 492 staff members were to be potentially affected, but at the end, 350 employees are to be retrenched,” she said.
All staff have been offered psychological care through the company’s employee assistance programme. Those who will be retrenched, as well as their families, are offered access to the programme for up to six months from their date of termination. Hlela said all affected employees have also been offered financial guidance and individual sessions with a financial planner.
“Retrenched employees will be given priority consideration in the event of future availability of employment opportunities,” she said.
Before the floods, Sapref had already stopped manufacturing petrol, and the facility was being used as a depot for imported fuel. At the height of its production, the refinery produced 35% of all fuel used in the country.
Cosatu’s provincial secretary, Edwin Mkhize, said the company, together with the government, should be held accountable for the job losses.
“When Sapref announced that it was stopping production, it promised that no one was to lose their job. They have now gone back on the word, and they need to be held accountable,” said Mkhize.
Before the floods, former KwaZulu-Natal Premier Sihle Zikalala said a proposal had been submitted to Treasury to buy Sapref from its owners, BP South Africa and Shell South Africa, to save jobs. After the floods, however, all of the government’s efforts went into rebuilding the damaged public infrastructure elsewhere.
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