CAPE TOWN – Bidvest announced on this week that it had allocated R400 million towards employee relief initiatives through a newly formed Bidvest Group Covid-19 Employee Fund.
The JSE-listed services, trading and distribution group, which employs 100 000 people in South Africa, said in a statement that it had put in place a raft of measures to mitigate the impact of the Covid-19 lockdown on its staff.
Bidvest group chief executive Lindsay Ralphs said the funds would be used to support the income needs of staff who had been unable to work during the Level 5 lockdown and who will still not be able to work when the lockdown is downgraded to Level 4.
Executives will also be taking a 40 percent pay cut and board members will be taking a 30 percent pay cut.
“Like the rest of the world, South Africa is going through an unprecedented crisis,” said Ralphs, “and even diversified groups like ours are not immune to the economic fallout. As one of the largest employers on the JSE Top 40 index, we nevertheless recognise that our people are our most valuable asset and are making financial arrangements that will help us shield them against the impact of the crisis.
“The management team has further committed to doing all in its power to ensure that we pay over income benefits to our employees as quickly as possible so as to limit unnecessary suffering during this time.”
Employees who have been able to work during the lockdown period will receive their salaries in accordance with standard business practices as the country moves from Level 5 to Level 4.
The company said the categories of staff who have been unable to work during the lockdown and who might still not be able to work when regulations ease on 1 May, would be supported through the fund.
These included job grades from general workers through to supervisors and managers. These employees will each receive an ex-gratia payment of R2 000 from the Group Covid-19 Employee Fund to assist them with immediate needs and to supplement any UIF TERS allowance being offered by government.
This funding mechanism would ensure that the most vulnerable employees receive as close as possible to their full salary during this difficult time.
Ralphs said the Group Board and Exco had agreed to establish similar funds at divisional and subsidiary level, which would be used to meet the humanitarian needs of staff in those areas of the business.
This is intended to ease the transition between the various lockdown phases as some group companies will be able to return to partial operations as from 1 May, while others will not.
“We care about our people and their wellbeing and are making every attempt to soften the blow of the Covid-19 lockdown,” said Ralphs. “Similarly, we will be taking every precaution to ensure that the group and its individual companies continue to be viable and sustainable so that we can continue to serve our economy, country and people.”