Adcock Ingram to retrench as SA’s jobs bloodbath hits pharma industry
· Citizen
South Africa’s jobs bloodbath shows no sign of slowing, with the pharmaceutical industry the latest casualty.
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In just 18 months, the sector has shed thousands of jobs, closed plants and seen its domestic production capacity hollowed out.
Adcock Ingram to retrench 250 workers
Pharmaceutical giant Adcock Ingram recently announced plans to retrench 250 employees at its Clayville plant, north of Johannesburg, citing operational losses and the closure of a division following product recalls by the South African Health Products Regulatory Authority.
The company says the shutdown created underutilisation, excess headcount and unprofitable product lines.
But the General Industries Workers Union of South Africa (Giwusa), representing the workers, rejected this rationale outright.
After tense bargaining council negotiations this week at the Clayville plant, Adcock agreed to reduce the number of retrenchments from 250 to between 104 and 84, with negotiation ongoing, although the union insists the company must open its books to prove its claims of financial distress.
‘Profits are prioritised over people’
Union leader Mametlwe Sebei accused Adcock of making workers pay for management’s failures.
“Workers create value; management and shareholders decide how that value is distributed. Profits are prioritised over people – that is a choice, not a necessity,” he said.
Sebei argued that if certain products generate zero or negative margins, the solution lies in changing the product mix, not discarding the workforce.
“The company must restructure its operations, not its workforce,” he added.
Sebei demanded Adcock exhaust every alternative before cutting jobs.