40 percent as a result of declining revenues and delay of its oil refinery project, Project Mthombo, a report by Business Day South Africa confirmed.
PetroSA, which has been deliberating with trade unions representing its 1,800 employees, is set to conduct the retrenchment in phases. “This is part of the company’s cost-containing measures. It was the last resort in a series of planned measures,” PetroSA vice-president of corporate affairs, Zama Luthuli, said this week.
She also confirmed that a letter had been sent to the trade unions concerning the proposed cuts. “We have been talking to our employees through internal processes for some time.”
The retrenchment plans, according to reports, raise questions over the government’s commitment to Project Mthombo, the cost of which last week’s budget put at R200 billion ($17.09 billion).