The South African Commercial, Catering and Allied Workers Union (SACCAWU) unequivocally rejects Sun International South Africa’s decision to embark upon another Section 189A retrenchment process.

The union regards this exercise as legally defective, procedurally unfair, socially irresponsible and fundamentally inconsistent with the public-interest obligations attached to gaming licences issued by Provincial Gambling and Gaming Boards.

Following the first CCMA-facilitated consultation, SACCAWU convened a national meeting to assess the employer’s presentation and proposals. Our assessment revealed significant legal, procedural and substantive shortcomings that call into question both the legitimacy of the consultation process and the employer’s commitment to meaningful engagement as required by the Labour Relations Act.

Most concerning is that departments within the company have already undergone retrenchments, while other departments have been scheduled for retrenchment, before meaningful consultations with organised labour have been concluded. SACCAWU is only meeting with the employer today in respect of this process, yet decisions affecting employees have already been implemented elsewhere.

This conduct strikes at the very heart of Section 189A of the Labour Relations Act, which requires employers to consult before decisions are implemented. Consultation cannot become a ceremonial exercise where management has already predetermined outcomes. Such unilateral conduct undermines the purpose of the law, frustrates consensus-seeking and renders the consultation process fundamentally defective.

SACCAWU is therefore seriously considering every legal remedy available, including approaching the Labour Court for urgent relief to interdict the retrenchment process until the employer complies fully with both the letter and spirit of Section 189A. The union will also pursue every appropriate legal, regulatory and constitutional remedy available to protect workers from unlawful dismissals and procedural injustice.

The union is equally concerned by the broader strategic direction of Sun International under foreign executive leadership. At a time when South Africa faces persistently high unemployment, particularly among young people, it is deeply troubling that one of the country’s flagship tourism and gaming companies is led by a foreign Chief Executive Officer while simultaneously reducing employment opportunities for South African workers.

Foreign direct investment should contribute to industrial development, skills transfer, employment creation and sustainable economic growth. It should never become a mechanism through which local employment is sacrificed in pursuit of short-term financial returns or shareholder value.

Investment in South Africa’s tourism and hospitality sector must strengthen the domestic economy and expand decent work, not deepen unemployment and inequality. SACCAWU wishes to make it clear that we are not opposed to investment or international participation in the South African economy.

We support responsible investment that advances national development objectives. However, where foreign investment coincides with large-scale job losses, weakened labour standards and diminished socio-economic commitments, organised labour has both the right and the obligation to challenge such practices in defence of South Africa’s workers and economy.

Gaming licences are not ordinary commercial assets. They are public privileges granted by Provincial Gambling and Gaming Boards subject to stringent licensing conditions, employment commitments, transformation objectives and socio-economic obligations.

These licences were awarded on the basis that operators would create sustainable employment, contribute to local economic development, invest in skills development and promote responsible corporate citizenship. SACCAWU believes the proposed restructuring fundamentally contradicts those commitments.

The union therefore calls upon all Provincial Gambling and Gaming Boards to urgently investigate whether Sun International continues to comply with the employment, transformation and public-interest undertakings upon which its gaming licences were granted or renewed.

Among the issues requiring urgent regulatory scrutiny are:

• Whether the proposed retrenchments are compatible with the employment commitments made to Provincial Gambling and Gaming Boards. · Whether staffing reductions undermine the public-interest objectives underpinning gaming licences.
• Whether licence conditions relating to employment, transformation, skills development and local economic development continue to be satisfied.
• Whether genuine alternatives to retrenchment have been properly explored.
• Whether meaningful consultation has taken place before operational decisions were implemented.
• Whether organised labour has received all relevant information necessary to engage meaningfully as contemplated by Section 189A.

SACCAWU further questions how a company that continues to benefit from valuable gaming licences and regulated revenue streams can justify reducing employment while expecting workers to bear the burden of corporate restructuring. Workers are not disposable costs on a balance sheet. They are the people whose dedication, professionalism and sacrifice have built Sun International into one of South Africa’s leading tourism and gaming companies.

SACCAWU will therefore vigorously defend every job and every statutory protection available to workers.

We shall pursue proceedings before the Labour Court where necessary, engage Provincial Gambling and Gaming Boards on compliance with licensing obligations, and explore every legal avenue available, including urgent interdict proceedings where circumstances justify such intervention. South Africa cannot permit corporations to secure valuable public licences on promises of employment creation, transformation and community development, only to abandon those commitments once commercial operations are established. Such conduct undermines public confidence in the country’s regulatory framework and weakens the developmental objectives that underpin the gaming and tourism sectors.

SACCAWU calls upon government, Provincial Gambling and Gaming Boards, organised labour, civil society and all South Africans to reject any restructuring process that places profits ahead of people and disregards the public commitments upon which gaming licences were granted.

The union remains resolute in defending decent work, promoting social justice and ensuring that economic development in South Africa serves the interests of its people rather than the narrow interests of capital.

Issued obo The Deputy General Secretary

Jerry Thabo Mmoneri

Mobile: 0823369298

SACCAWU National Office Bearers