Free State Rugby faces job cuts as financial crisis bites
NEWS: The Free State Rugby Union has taken a decisive step in its fight for financial survival, initiating a retrenchment process that could see up to a dozen staff members lose their jobs.
In formal communication issued on 18 March, the union confirmed it has triggered Section 189(3) of the Labour Relations Act, effectively starting a consultation phase with employees ahead of a scheduled meeting on 27 March.
Reports from News24 indicate that while the Cheetahs’ 41 contracted players will remain unaffected, the proposed cuts are expected to impact administrative and operational staff as part of a wider effort to streamline the organisation.
The move comes after reports in February that a consortium of more than 10 Free State businessmen had stepped in to pull the union back from the brink of financial collapse.
Before that intervention, the union was under severe financial pressure, with debts running into millions and, at one stage, forced to borrow money simply to meet salary commitments.
In the letter, the union said it has been operating at a loss for at least five years despite implementing various cost-cutting measures, which have not been sufficient to turn its fortunes around.
The document outlines several reasons for the proposed retrenchments, describing them as a last resort in an effort to ensure the organisation’s long-term sustainability.
It also notes that certain roles within the union have become redundant, while in other cases duties could be absorbed by remaining staff as part of a streamlined structure.
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