KwaZulu-Natal MEC for economic development, tourism and environmental affairs Nomusa Dube-Ncube met with representatives of Tongaat Hulett on Friday to look at the challenges faced by the company, which could result in job losses.
The sugar and property giant announced recently that it was facing “significant business challenges” and was looking to reduce its headcount as part of a broader restructuring of the business, reports Northglen News.
The company has issued Section 189 letters to employees which will impact 5,000 permanent and temporary employees across Tongaat Hulett’s operations in six SADC countries.
The department said as a strategic investor in the province, involved in one of the key economic development spheres, government has decided to look for a way to work with Tongaat Hulett to minimise the impact this would have on the livelihood of employees.
Following the meeting, the MEC said: “We have just had a fruitful meeting with the representative of Tongaat Hulett with a view of getting an understanding of where we stand in terms of Tongaat Hulett developments.
“We have now decided that we are going to form a task team that comprises of a Tongaat-Hulett team as well as our team from the government which will then develop a report that we will take to cabinet with a view of getting the multi-disciplinary team to look at various aspects of those investments.”