Coca-Cola Beverages South Africa (CCBSA) has notified unions that it plans to cut more than 600 jobs, in a move that highlights growing pressure on employers in the country’s troubled economy.

Business Day reported that the Food and Allied Workers Union (Fawu) received notices of possible retrenchment from the company on 2 September. Fawu spokesperson Dominique Martin confirmed the number of roles at risk and said the union opposed the cuts.

In a statement cited by the newspaper, CCBSA said the decision was driven by “evolving industry dynamics”. The bottler added that adjustments to its organisation “may unfortunately result in job losses” if consultations conclude in favour of the proposed restructuring.

The company stressed that no final decision had yet been made. Discussions with the union are continuing, in line with South Africa’s labour laws.

The Food and Allied Workers Union has vowed to fight the plan, warning that the proposed retrenchments will deepen already severe unemployment in South Africa. The country’s jobless rate remains among the highest in the world, with nearly a third of the workforce out of employment.

Martin told Business Day that the union was reviewing CCBSA’s rationale for the cuts and would press for alternatives. Fawu has previously criticised multinational companies for seeking efficiencies at the expense of South African workers.

CCBSA is part of Coca-Cola Beverages Africa, the eighth-largest Coca-Cola bottling partner worldwide by revenue. The group operates across several countries and is majority-owned by the Coca-Cola Company.

The South African unit employs thousands of staff and produces a wide range of Coca-Cola products for the domestic market. While the bottler has not disclosed detailed reasons for the retrenchments, industry analysts point to higher input costs, a fragile consumer environment and the impact of power shortages on production.

Coca-Cola Beverages Africa did not immediately respond to requests for comment, Reuters reported.

The potential job cuts follow a string of similar announcements from other large employers in South Africa. Ford Motor South Africa, Glencore, ArcelorMittal South Africa and Goodyear South Africa have all disclosed plans to reduce headcount in recent months, citing weak demand, higher costs and operational challenges.

Next steps

Under South African law, employers are required to engage in a consultation process with unions before finalising retrenchments. That process allows for alternatives to be discussed, such as redeployment or voluntary severance, but does not guarantee that layoffs can be prevented.

For now, the outcome rests on negotiations between CCBSA and Fawu. If the cuts proceed, they will represent a significant reduction in the company’s workforce and another setback for an economy already grappling with persistent unemployment.

While CCBSA says it is responding to industry shifts, the proposed retrenchments add to a growing debate over how global companies balance efficiency drives with their social obligations in one of the world’s most unequal societies.

Source : https://www.peoplematters.in/news/strategic-hr/coca-cola-staff-face-layoffs-as-company-reviews-operations-43700