NewsExpress advert Yudala banner
1,000 SABMiller managers to lose jobs following merger

By News Express on 23/01/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 975


Ten weeks after SABMiller shareholders gave the go-ahead for the third-largest merger in corporate history, Anheuser Busch InBev (AB InBev) sent out a voluntary severance offer to more than 1,000 of its management employees in SA.

This is the first time in recent history that South African Breweries has undertaken a retrenchment exercise on any scale. Plant modernisation in the 1980s was the cause of the last round of retrenchments.

“The group’s been in expansion mode since then so retrenchment was never on the cards,” said a former executive.

A memo was issued on December 12, which had a January 20 deadline to accept what one recipient said was a “very generous offer”. A reminder was sent out 12 days ago, just days after many of the managers had returned to their desks after their year-end break. The deadline has been extended.

AB InBev will not say what retrenchment figure the voluntary severance offer is targeting but stressed it would not interfere with the commitment given to Economic Development Minister Ebrahim Patel and the competition authorities on post-merger employment, in terms of which AB Inbev is required to maintain the number of employees in SABMiller’s South African operations for five years after the date of the merger.

There can be no forced retrenchments in perpetuity resulting from the merger.

The condition also ruled out AB InBev undertaking any voluntary separation arrangements within the category of Hay Grade 12 (supervisory) employee and below for five years.

“The voluntary severance offer, which is entirely voluntary, has been made available only to mid-level employees and above,” said Robyn Chalmers, head of media and communications.

She explained that some changes were being introduced to processes, ways of working and the structure of the business as well as roles.

“We understand that during this period of change some employees may wish to voluntarily exit the business, which is why we have introduced a voluntary severance offer.”

Chalmers said it was too early to say how many people might opt for the offer or what the effect in terms of cost savings might be.

Given the requirement to maintain job numbers and AB InBev’s cost-cutting objective it is inevitable that any management jobs cut will be replaced by job creation below supervisory level. Even before the £79bn merger was given shareholder approval, AB InBev had announced plans to cut 5,500 jobs from the global workforce in a bid to secure the $1.4bn of annual savings it promised investors.

The speedy action in SA is in keeping with the aggressive management style and cost-cutting focus of the Brazilian team that drives AB InBev.

CEO Carlos Brito famously eschews travel by private jet and will only fly business class for five-hour plus flights.

Within weeks of acquiring Anheuser Busch in 2008 his team moved quickly to cut jobs and costs.

Similar severe cost-cutting exercises appear to have been launched in SA with employees reporting the moves already include restrictions on photo-copying, which must now be double-sided and not in colour.
•Text courtesy of Business Day SA.
 

Source News Express

Posted 23/01/2017 12:31:50 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Fumbling Eagles (defending champions) crash out of 2015...

NiMet foresees isolated cases of rain today in...

Prince Adeyemi warns APC members against indiscipline

Obiano throws weight behind proscription of IPOB •Says...

Crisis hits Inter-Religious Council; CAN takes on Sultan,...

DPR warns marketers against illegal price

Ambode to Lagosians: Speak out against domestic violence...

“I DON’T WANT TO DIE”: Rev. King takes...

Man arraigned for beating policeman in Osun

Shocker: WORK STOPS ON 2ND NIGER BRIDGE •We...

Dawn of a new era as Nigeria embraces...

Appeal Court reserves judgement on Lagos DPO who...

 

Latest News UN staff serve strike notice Tinubu fingered in alleged plot to kill APC Troops nab herdsman with bullet-proof vest FG confirms 110 Dapchi schoolgirls missing, steps up rescue efforts FRSC rescues pregnant woman from suspected kidnappers China’s ruling party plots constitution change, 3rd term for Presidency Xi Jinping Corruption index: Nigeria’s poor ranking a wake-up call for Buhari administration — SERAP Boko Haram attacks Madagali (Adamawa) 35 times in 10 months •Kills 27, destroys over 100 houses Muslim scholars urge ‘uprising’ over US’ Jerusalem embassy move 297,000 vulnerable households get FG’s stipends in 20 states Army postpones 77 Regular Recruitment — Spokesman Jesus’s burial site shut in protest

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (327,091 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (319,274 views) Shameless Genevieve Nnaji exposes breasts in public (255,794 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (209,852 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (195,227 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (188,392 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (164,067 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (147,394 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,809 views) Lagos plane crash: Journalist releases victims’ names (130,135 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,828 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,607 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,912) Business Verdict (34) Columnists (806) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (447) Features (549) Global Business Monitor (226) International (1,809) Interviews (143) Live Commentary (28) Love Matters (106) News (33,120) Opinion (885) Pidgin (10) Politics (4,525) Religion (687) Sports (1,442) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement