Contract labourers hit as budget cut by 75%

Hundreds of contracted labourers, including artisans, painters and welders, at the naval dockyard in Simon's Town will lose their jobs in the coming months.

In a cost-cutting bid, the SA Navy in Simon's Town is laying off casual contracted labourers, even though some of them have been working there for more than a decade.

United Association of SA (UASA) representatives said the dockyard contract labourers' budget, controlled by the SA Navy, had been reduced by 75% and as a result hundreds of workers would lose their jobs.

This was the case for Robert Jones, who has been working as an artisan contracted to the navy for nearly 10 years.

On Wednesday, Jones was handed a letter, effectively a 24-hour notice, informing him of the termination of his contract by outsourcing company Simon's Outsourcing.

Jones, 47, said he was handed the letter by his supervisor at 10.20am on Wednesday.

"I just got the letter that work ... is finished," he said, holding the letter.

"I really don't know what's going to happen."

Jones is one of 59 labourers who were given termination of employment notices this week.

Nine others outsourced by another company, Capital Outsourcing, were informed last Wednesday.

Simon Balie of Simon's Outsourcing said the labourers should not be surprised, as they had known for a month that the contracts would be terminated. "About a month ago, the navy said they won't be needing the labourers, but they didn't give me the figures. I only got the numbers last Friday and then had to inform them late. I'm just a labour broker and follow orders from the navy."

Balie said the labourers had signed a contract that there would be no expectation of permanent employment.

Melanie Kohler of Capital Outsourcing said the labourers' contracts stated that they were allowed to give them at least a shift's notice if the contract was to be terminated.

"We sympathise with them and we are trying everything to find them other work," said Kohler.

The Cape Argus is in possession of letters from the navy stating: "The Fleet Logistics financial commitments and needs for the 2007/08 financial year exceeded available funding. This is, in particular, the situation with regard to funds available for the day to day operation of units and sections."

Dockyard general manager RH Hutton wrote in another letter: "The ... budget has a very limited amount that could be used for casual contract labour. Limiting the casual contract labour budget to R6 million for the financial year 2007/08 shows that only artisans from the production division, the docking party and some very limited labourers may continue (to be employed) ..."

Andre van Zyl of UASA said they were informed by Hutton about a month ago that the navy had cut the budget from R20m to R6m. Later, they were told it had been cut to R8m.

Hutton had also informed him that there would be drastic casual contract labour cuts.

Van Zyl said some people had been working for 12 to 18 years as casual contracted labourers in permanent posts.

He questioned how someone could work 13 years in an institution and still not be a permanent employee. "It's unfair that the Department of Defence is doing this."

Captain Lisa Hendricks of the SA Navy in Pretoria said that due to unforeseen legal action with regard to the transfer of the SA Naval Dockyard to Armscor, the SA Navy has had to put measures in place to best manage its resources, including manpower.

"This has resulted in a reduced requirement for casual contract labour.

"To date, it has been reduced by approximately 50 (people)," said Hendricks.

She said it was planned that Armscor will assume the management and operation of the Naval Dockyard in the near future, with a court hearing scheduled for May 25 where a decision will be reached in the matter.

"Any further reduction of casual contract labour will depend on the outcome of the court hearing," said Hendricks.

With acknowledgement to Andisiwe Makinana and Cape Argus.