Retrenchments on the cards at Sun international

By Drum Digital
29 January 2014

Retrenchments could be on the cards at hotel chain Sun International as part of a proposed restructuring process..

Retrenchments could be on the cards at hotel chain Sun International as part of a proposed restructuring process.

"Based on the company's initial assessment of restructuring possibilities, approximately 1700 positions throughout the South African operations of the company may potentially be affected," the company said in a statement on Wednesday.

Spokesman Michael Farr said this meant the company had identified these positions and they would be discussed during a consultation process, which had already begun.

"Yes, 1700 positions could be affected. They could be affected in a change of agreement or in any other way. It doesn't mean that it is a retrenchment figure," said Farr.

Sun International CEO Graeme Stephens said all options would be discussed.

"In the current environment, we have no choice but to propose the restructuring of the business," he said.

"Retrenchments, if applicable, would be a last resort for us and certainly not a decision that would be taken lightly."

Stephens said Sun International was putting every effort into both cost-saving and revenue-generating initiatives.

"Sun International is experiencing increasing pressure on revenues along with growing operating costs," it said.

"Over the past six years, revenue from the group's South African operations has increased by only 17 percent... Over the same six-year period, employee costs have risen by approximately 39 percent, with the minimum wage increasing by 47 percent." - Sapa

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