Firm avoids collapse after ‘last-ditch effort’, but laid-off workers lose benefits

2011-09-21 00:00

MORE than 60 workers from LCM Engineering in Pietermaritzburg have complained that they were not given their benefits when the the company told them it would wind down its affairs.

Workers told The Witness that the company said it had ceased trading and was to be placed under liquidation.

A worker said, “They gave us all documents to sign that they are anticipating retrenchment. We accepted the notice, but then they put up a notice to say they ceased trading and they are in liquidation. So we lost out on all our benefits.

“They paid everyone R275 for every completed year worked, but the legal pay is two weeks for every year completed for the first four years, on September 2, but on September 5 they resumed business as normal.”

The company’s lawyer, Dev Maharaj, said in a statement the owners considered placing the company in liquidation largely on account of certain members of staff having severely disrupted production by embarking on an unofficial go-slow, vandalising some of the equipment and generally resorting to widespread insubordination.

“A last-ditch effort was made to salvage the company, and rather than placing the company into liquidation many of the staff resigned and received ex-gratia payments from a third party as opposed to being left destitute should the company have been liquidated.”

However, workers said this was not true as in June this year short-time working was introduced.

A worker said this is disappointing because the company is still employing other people while they did not receive their benefits.



Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

Debtors/Creditors Supervisor

Century City
Pro Placements Recruitment Agency
R10 000 - R12 000 Per Month

CSR Inbound

Cape Town Northern Suburbs
O'Brien Recruitment
R14 000 - R16 000 Per Month

Graphic Designer

Cape Town Northern Suburbs
Creative Sourcing
R7 000 - R9 000 Per Month

Property [change area]

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.