Retrenchments at Rain
Mobile network operator Rain has retrenched dozens of employees as part of the transition of its Johannesburg offices from a headquarters into a regional branch, despite previously promising the change would not result in job losses.
The confirmation comes after a source with knowledge of the matter alleged that the company had “effectively retrenched over 100 employees” after they refused to relocate to the operator’s new headquarters in Cape Town.
The source claimed Rain had given the employees an ultimatum to relocate or face retrenchment, without offering salary increases for positions in the new city.
They also alleged that the employees did not have proper representation in the Section 189 retrenchment process.
“The consultation processes were nothing but a sham; they were headed by the COO, CFO and the ‘non-existent’ human relations office,” the source said.
The employees were supposedly served with their letters of retrenchment a month and a half ago, with their final day at the office being 31 July 2023.
In response to MyBroadband’s questions, Rain confirmed the dismissal of 54 employees but said that this had been by the book.
“The process of this transition has been conducted in compliance with the Labour Relations Act,” Rain said.
“Like any structural change, new roles have been established, and employees who were affected had the opportunity to apply for these newly created positions.”
Rain emphasised that it was not closing its Johannesburg office — it would become one of several regional branches, including those recently established in Durban and Port Elizabeth.
The operator said it aimed to have regional branches in central locations across the country, which would “hopefully” create more jobs and opportunities.
“At Rain, we are committed to investing in South Africa and ultimately creating more job opportunities as we grow both the 5G and national 4G mobile networks,” the company stated.
The layoffs come despite Rain previously telling MyBroadband that no Johannesburg employees would lose their jobs due to the moving of its headquarters to Cape Town.
That came after Rain employees alleged the operator was pressuring them into moving to Cape Town.
Employees were also concerned about the security of their jobs following the company outsourcing its customer support to India-based Wipro in November 2022.
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