Trade Union Demands Insurance Retrenchment Transparency

July 14 - In a statement issued by Solidarity trade union, demands have been made for Mutual and Federal, the leading insurance company in the industry, to follow a completely transparent policy over the planned retrenchment of hundreds of employees.

The statement was referring to Mutual and Federal's annual report which showed that the company plans to retrench 623 of its employees over the next eight months, bringing down the number of people in its workforce to 2055. At the end of 2007, 3311 people worked for Mutual and Federal, while this number dropped to 2678 by May 2008.

The retrenchment plans were part of the annual report's Article 189 and Solidarity has requested to be part of this process, also putting in a demand that Mutual and Federal discuss the issue with them.

A spokesman for Solidarity, Jaco Kleynhans, said: "There is something wrong at Mutual and Federal. The company wants to get rid of 38% of its employees within eight months. The problem shouldn't be placed on the employees' doorstep, but rather with the management of Mutual and Federal. The union isn't happy with Mutual and Federal's deception regarding the magnitude of the retrenchments. Solidarity would like to discuss the retrenchments with Mutual and Federal. The company is obligated by law to discuss this with unions whose members are influenced."

"The wrong heads are rolling," concluded Kleyhans. "The problem is with management and shouldn't be placed on the employees' doorsteps."

As part of its Claret project, Mutual and Federal may retrench staff if their positions do not exist anymore under new structures formed.