MOSSEL BAY NEWS - The general feeling among employees at PetroSA is desperation, says a man who has been working at the state-owned enterprise for almost 30 years.
This follows the announcement that PetroSA plans to retrench staff. Notices of retrenchment issued could affect up to 500 of the company's employees.
In November 2020, the Mossel Bay Advertiser reported on the site visit by the Portfolio Committee on Mineral Resources and Energy (PCMRE) to PetroSA. The visit to Mossel Bay also included discussions with the Mossel Bay Municipality on the vast, negative economic impact it would have, should the Mossel Bay gas-to-liquid refinery close.
The retrenchment notices came days after the PCMRE's site visit to the refinery outside Mossel Bay.
Due to a critical decline in indigenous gas feedstock, production at PetroSA has been minimal. It was expected that the dwindling supply would have run out by December 2020, which is why the PCMRE urged the implementation of a turnaround plan to stimulate profitability and save jobs.
According to a detailed presentation made by the Mossel Bay Municipality to the PCMRE, job losses at PetroSA would have a devastating effect on local small to medium businesses, since PetroSA employees represent 5% of the workforce in Mossel Bay.
The presentation listed the number of PetroSA employees as 1 130. The municipality hypothesised that, should these employees cease to support the local economy, it could have a knock-on effect of job losses far in excess of 1 000.
The possible loss in municipal income in the worst case scenario could be R36,5 million per annum over the short to medium term.
In response to the retrenchment announcement, the municipality responded that it had noted with concern the news of potential job losses at PetroSA.
"Covid-19 has a hugely detrimental impact on the local economy and any job losses such as those mooted for PetroSA will undoubtedly affect Mossel Bay and the Garden Route negatively," said municipal spokesperson, Nickey le Roux.
Turnaround plan
Following the visit to Mossel Bay in 2020, the PCMRE issued a report stating that it was aware of a turnaround plan for PetroSA, approved by the board of the Central Energy Fund (CEF) Group.
The Advertiser also reported in November last year that PetroSA's Thandi Nameka spoke at a networking engagement of the Mossel Bay Business Chamber. She said that projects were being consolidated in order to secure employment at PetroSA.
It has been reported that unions, such as the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu), had been in talks with PetroSA since the second half of last year to discuss how the entity might be saved.
A steering committee was established, though it is yet to meet.
By all accounts is seems as if the turnaround plan by PetroSA, which has been approved, has not yet been implemented.
"We are all trying to carry on doing our jobs to the best of our ability, but we feel let down by management. We feel trapped on a sinking ship. The hole in the hull has been there for a long time, and no matter what we as employees do, our efforts cannot save this ship," an employee told the Advertiser this week.
He said that another concern among employees was whether the retrenchment process ahead would be fair. "We just pray that it will be done on merit."
The Advertiser twice this week requested PetroSA to comment on the status quo, the proposed turnaround strategy and the retrenchment process. Receipt of these enquiries were noted, but at the time of going to press, no comment had been received.
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