Question:

I have been permanently employed at this company for almost 4 years, of which 2 years (after restructuring) has been by a new company (i.e. just different name, same place and people) and with a new contract. Still permanent employee. I am appointed as Communications Manager and Executive Personal Assistant and my contract clearly lists both jobs (with their responsibilities). A 13th cheque as part of my yearly income/salary, 25 days’ annual leave and salary of R16000 (TCTC).

Just over a month ago, out of the blue, the CEO called me and my 2 colleagues (Client Relations Manager and Admin Manager) in to the boardroom and told us that they can either retrench us or reduce our pay, therefor they (the CEO & Directors) decided to reduce our pay. It was later established that the reduction for all of us is 35 %. How they came to that amount is however unclear. We did not sign new contracts or anything else and also the CEO said that all 13th cheques (paid on our birthdays) will stop with immediate effect, BUT I was the only employee that had not this year received my 13th cheque all my male colleagues had already received theirs! And, remember, it’s a ‘given’ i.t.o. the contract. Now the CEO also said that we must increase sales & income of the company or more salary cuts and/or retrenchments will take place.

However, none of us were appointed as sales personnel or estate agents. My two male colleagues (on the same ‘level’ as me, with no more training/qualifications than me) also earn substantially more than me, even the one appointed after me. They are also scared of taking on the employer as they both have families and bonds to pay. After the salary cut they now earn what I earned before the reduction in salary. The company is in a dire financial situation and we have to lie to clients over the phone and say all is well with their investments, however it would not seem that way at all. The CEO & directors already pocketed a lot of money for themselves, in stead of helping the company. This is not the best time to find alternative employment, so what should I do? I am scared that by doing nothing the employer might think that I am agreeing to the new terms (although not in writing!).

Answer:

Any changes to terms and conditions to contracts must be done after consultation and with mutual signed consent with the employee. Thus as this has not been done the changes are not valid. I cannot make your decisions and you are a big girl now but if they are financial difficulty I doubt it will get better. Thus your situation may get worse. Maybe get your CV out in the interim on the quiet and leave if you find anything stable. You can enforce your salary and terms via CCMA but once you do this they wont be happy bunnies and will get rid of you anyway.

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