In a move to manage financial strain and operational downsizing, Reinhardt Transport Group (RTG) has extended an invitation for voluntary retrenchment to its drivers.
This decision arises from severe market challenges and a notable drop in demand, as outlined in an internal communication from RTG.
RTG has cited “a dramatic reduction in market requirements” as a key reason for this initiative.
The company explained that competitive pressure has driven some firms to reduce prices to unsustainable levels, making it unfeasible for RTG to compete without significant operational adjustments.
As a result, RTG must “dramatically downsize the fleet to meet the reduced market requirements” and mitigate financial burdens.
The reduction in fleet size naturally affects the number of drivers needed, prompting the consideration of retrenchments.
To manage this transition smoothly, RTG has designed a voluntary retrenchment package aimed at mitigating the impact on employees.
The package includes compensation for wages up to the last working day, notice pay equivalent to eight weeks’ wages, and severance pay of three weeks for each completed year of service.
However, gross payments will be subject to statutory deductions and any debts owed to RTG or third parties.
Read |Â Voluntary Severance Package – Here is why you should take it or not
Additionally, employees will receive a service certificate indicating their retrenchment.
RTG also committed to assisting with applications for UIF and payments from the Bargaining Council (NBCRFLI), including Provident Fund contributions.
RTG has highlighted that there are about 47 opportunities available for voluntary retrenchment, stressing that participation is entirely voluntary.
Employees interested in applying must do so by the close of business on 24 June 2024.
The company assured that the decision to apply rests solely with the employees, with no coercion involved.