By Lehlohonolo Lehana.
The South African Petroleum Refineries (Sapref) based in Durban, has announced the conclusion of a retrenchment agreement with labour, and it will retrench 350 employees.
The refinery, which is jointly owned by Shell and BP, halted operations in March last year after it announced it would freeze spending at the largest crude refining facility in the country.
Sapref said in a statement: “In April 2022 Durban experienced severe flooding which resulted in Sapref refinery submerged in up to 3m of water, resulting in extensive flood damage.
“The flooding resulted in severe damage to the refinery requiring intensive capital investment of about three-five years’ duration, for repair due to damage of long lead items including process control room components and electrical substations.”
Given the estimated duration of the repairs and “on the future of the refinery”, it said it had taken a decision to “right size the organisation”.
It started a consultation process with staff in October last year which was done through a CCMA-facilitated process with labour representatives and trade union Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppwawu).
“A total of five CCMA facilitation sessions were held exceeding the legislated four sessions and 60-day period.
“Initially 492 staff were potentially affected but at the end 350 employees are to be retrenched.”
All Sapref employees have been offered psychological care through the employee assistance programme (EAP).
Those who will be retrenched and their families are offered access to the EAP for up to six months from their date of termination, the company said.