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In an effort to keep financial pressure and operational cuts under control, Reinhardt Transport Group (RTG) has extended an invitation for voluntary cuts to its drivers.

This decision follows serious market challenges and a notable decline in demand, as outlined in an internal communication from RTG.

RTG has cited “a dramatic reduction in market requirements” as a key reason for this initiative.

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The company explained that competitive pressures have driven some companies to reduce prices to unsustainable levels, making it unfeasible for RTG to compete without significant operational adjustments.

As a result, RTG must “dramatically reduce its fleet to meet reduced market requirements” and ease its financial burden.

The reduction in the size of the vehicle fleet obviously has consequences for the number of drivers required, which gives rise to consideration of cutbacks.

To ensure this transition runs smoothly, RTG has designed a voluntary retrenchment package to soften the impact on employees.

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The package includes wage compensation until the last working day, a severance payment equal to eight weeks’ wages and a severance payment of three weeks for each completed year of service.

However, gross payments are subject to statutory deductions and any debts owed to RTG or third parties.

Read | Voluntary redundancy package – Here’s why you should or shouldn’t take it

In addition, employees receive a service certificate stating their dismissal.

RTG has also committed to assisting with applications for UIF and Bargaing Council (NBCRFLI) payments, including Provident Fund contributions.

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RTG has highlighted that there are approximately 47 opportunities for voluntary cuts, stressing that participation is entirely voluntary.

Employees interested in applying must do so before cut-off time on June 24, 2024.

The company assured that the decision to apply lies solely with the employees, without any coercion.

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