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Edgars workers face the axe
Starting in May, Edcon plans to cut jobs at its 13,000-employee Edgars chain. The move is an an attempt to reduce costs as the chain is still not meeting its targets.
"The chain is still below its productivity and efficiency targets," Debbie Millar, a spokeswoman for the Johannesburg-based company, said in an e-mail yesterday, reports Bloomberg News.
"Any job losses are regrettable."
According to Bloomberg News, Edcon, which is controlled by US private-equity firm Bain Capital Partners, has been revamping some of its 190 Edgars stores in an effort to improve market share.
Millar said that Edcon has started a consultation process with affected employees but does not yet know the number of job cuts to be made.
Not every Edgars store will lose staff and the job cuts will includemanagement.
But is this the only way? Surely job cuts should be the last resort? Johan Botes, in his article Adcorp employment index - alternatives to retrenchment, poses this question:
"Is shedding jobs the best avenue to follow for businesses adjusting to depressed market conditions, let alone for a country struggling to find employment for a group that is larger in number than the population of Johannesburg?"
"There can be no doubt that businesses that have outgrown the need for certain skills or do not have sufficient work to keep all staff gainfully employed have the legal prerogative to restructure the business, even where this lead to redundancy of positions. However, where the reason for the proposed retrenchment relates to cutting costs employers should consider the secondary impact of using retrenchments to achieve the cost savings. Considering alternatives to retrenchment could have a positive impact on the business and its employees in the long run," concludes Botes.
Frew Murdoch is the assistant editor of HR Pulse. She is currently completing the last semester of her BA degree in Communications and English. "I stumbled across your review of our Ethics Guide published 28 June 2012 and wish to thank you for the positive and complimentary comments made – this was a lovely surprise and most rewarding. I will certainly pass this on to all co-authors of the Guide."
Christine Botha, co-author of 'Ethics in HR Management: A guide for HR professionals and line managers', had this to say:
