00:00In the last quarter of 2024, it was reported that Stork Technical Services Limited, which
00:05has its headquarters in the Netherlands, was shutting down.
00:09It came after losses of over $84 million from 2020 up to that time.
00:15389 employees were expected to be sent home, and Labour Minister Stephen McClatchy, in
00:21an update provided to the Senate, says the company did engage in a consultative process.
00:28And the management and union's last meeting was in January 2025.
00:34I am also happy to report that 91% of the daily and hourly paid staff have been paid
00:43and have left the company.
00:44These payments were made ex gratia.
00:47The remaining staff, mainly monthly paid employees, are still at the company to close off outstanding
00:52administrative issues.
00:54A consultant has been hired to liquidate the company.
00:58The consultant further advised that the company serviced its last client in November 2024
01:05and is now officially closed.
01:07The minister outlines the difference between retrenchment exercises, which are to be done
01:12in accordance with the Retrenchment and Severance Benefit Act, and the shutting down of a company.
01:18In the case of retrenchment, employers are required to inform each employee in writing,
01:22as well as to provide written notice to the Ministry of Labour and the majority representing
01:27trade union.
01:29But as it pertains to the closure of a company.
01:32This is not expressly governed by the RSBA and presently there are no legislative procedures
01:40in the Industrial Relations Act or RSBA that require the intervention of the Ministry of
01:46Labour in relation to closure of businesses.
01:51McClatchy says that is a matter dealt with by the representing trade union under the
01:56Collective Bargaining Agreement, which is superior to the RSBA.
02:00Further to that, he states that non-unionized employees are entitled to compensation and
02:06can report their grievances to the ministry based on the RSBA.
02:11The minister can also intervene under the Industrial Relations Act if the national interest
02:17is under threat.
02:19McClatchy acknowledges that a lack of legislative procedures limiting action from the ministry
02:24is a matter to be reviewed.
02:27As he says, both pieces of legislation are under consideration.
02:31And although I cannot remember precisely if this has been taken into consideration, definitely
02:40the stock issue has now raised that and have identified a loophole.
02:48And since we do not want our citizens to be left back or disadvantaged, I will take
02:56a personal look at it to ensure that we look at how we could close that loophole.
03:02McClatchy says the time frame from now until the general election is too short to amend
03:06two pieces of legislation and that would have to be done subsequently.
03:11Alicia Boucher, TV6 News.
03:18Alicia Boucher, TV6 News.
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