EOH considering salary cuts and other measures amidst coronavirus crisis

EOH is considering drastic measures to ensure the future sustainability of the company amidst the nationwide coronavirus lockdown.

The company has informed employees the measures which are currently being considered include a 20% salary cut across the board.

Moving salary payments to the last day of the month to limit the impact of the lockdown is also being considered.

EOH is currently looking for feedback from employees on how it can save costs to keep the doors open, post lockdown.

According to the company, it needs to save millions of rand per month to compensate for non-payments from clients over the lockdown period.

Should the proposed measures be implemented, they are expected to last for the next two to three months before normal business resumes.

EOH CEO Stephen Van Coller explains

EOH CEO Stephen Van Coller told MyBroadband they are currently in consultation with employees to find the best way forward.

He said it is an uncertain time for many companies, including EOH, and the proposed interventions are a proactive step to give certainty to employees.

He explained that EOH must continue to serve its customers – many of which are core to the South African economy, like banks and the government institutions.

This includes moving staff from areas of the economy which are now shut to areas which need additional resources, such as telecoms.

Van Coller told MyBroadband it is too early to say what the impact of the coronavirus outbreak and lockdown will be on EOH, though.

He could therefore not say what the lockdown’s financial impact on EOH will be and whether he expects job cuts at the company.

Instead of waiting for problems to hit them, however, Van Coller said proactive steps can help to ensure the company continues to operate normally.

An intervention like a 20% salary cut can also go a long way to prevent retrenchments.

He said a final decision on which route the company will take is expected early next week.

Now read: EOH CEO responds to allegations from company insiders

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EOH considering salary cuts and other measures amidst coronavirus crisis