Saftu calls on Edcon management to avoid potential job losses
Edcon CEO Grant Pattison said while the company has been in financial trouble for a long time, it’s already on track in closing a deal that will save the company.
JOHANNESBURG – The South African Federation of Trade Unions (Saftu) says the country cannot afford any more job losses.
The comments come on the back of a report by The Sunday Times which said that over 100,000 jobs are on the line at Edcon due to financial problems.
However, the retail giant which owns Edgars has refuted this.
It says it's close to completing a deal which will see it recapitalised for the next few years.
Saftu's Zwelinzima Vavi has urged Edcon to do all it can to ensure that workers' jobs are safe.
“South Africa can’t afford even a single job loss from Edcon and that’s why we’re calling on their management to do whatever it takes to avoid that calamity.”
But Edcon has refuted reports that it is facing liquidation.
Instead, it said that it is happy to announce that it’s close to completing a deal which will see it recapitalised for the next few years.
Edcon said that all its shareholders, landlords and suppliers have come together in working towards saving the company.
CEO of Edcon Grant Pattison said while leaks happen, the article on the front page of the paper is misleading and sensational.
Pattison said while the company has been in financial trouble for a long time, it’s already on track in closing a deal that will save the company.
“It’s a deal which will see us capitalise for the next two years and all of our stakeholders, shareholders, landlords, suppliers have come to the party.”
Pattison said the deal has not been signed yet but the future of Edcon will be debt free.
“And then implemented sometime in the first three months of next year.”
He said there will be no net job loses but there will be fewer stores.
(Edited by Leeto M Khoza)