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Tribunal approves DSV South Africa and Globeflight Worldwide Express SA merger with employment conditions
The Tribunal has approved the merger whereby DSV South Africa (Pty) Ltd (“DSV”) will acquire Globeflight Worldwide Express (SA) (Pty) Ltd (“Globeflight”). Globeflight will become a wholly owned subsidiary of DSV. The merger has been approved, subject to various employment-related conditions:
Retrenchments
The merged entity will, for a period of three years from the merger implementation date,:
- not retrench any semi-skilled employees;
- limit the number of retrenchments of skilled employees to no more than 140 employees; and
- limit the number of retrenchments of professionally qualified employees to no more than 59 employees.
Preference with vacant positions
DSV will maintain a database of the names and contact details of all retrenched employees. Should any vacancies arise within the broader DSV business, DSV will inform the retrenched employees of relevant vacancies for a period of three years following the merger implementation date. Retrenched employees who meet the employment criteria will be given preference in the appointment process. Should any trade union members be impacted, DSV will engage with the relevant trade union in the assessment of skills required for vacancies identified.
Redeployment
In circumstances where a particular employee does not possess the requisite skills or experience for redeployment in a particular role, DSV will consider whether, to the extent feasible, such an employee would be able to fulfil the role (within a reasonable period) following training, mentoring or other re-skilling initiatives.
Fund for skills training
DSV will establish a Fund to re-skill or re-train eligible skilled employees who have been retrenched, in accordance with specified principles and conditions including the following:
- each eligible employee will be allocated a maximum of R15 000 for training or reskilling;
- any eligible employee wishing to use the Fund must apply within 12 (twelve) months from the merger implementation date;
- DSV will continue to offer funding from the Fund to the eligible employees for a period of three years after the merger implementation date or until the Fund is exhausted, whichever occurs first; and
- in the event that an eligible employee does not opt for training or reskilling, he/she can request that the Fund be utilized by a nominated close family member for paying school fees and/or other expenses related to the education of the nominated close family member (where “close family member” extends to spouse, children, brother, sister, mother, father, sister’s children and brother’s children).
Trade Union consultations
In relation to any process instituted in terms of Section 189 of the Labour Relations Act regarding an employee not covered by the moratorium, to the extent that such employee is a trade union member, DSV will consult with the relevant trade union and such consultations will include a skills assessment.
National Transport Movement (NTM)
For a period of six months after the merger has been approved (the “recognition period”), DSV will continue to recognise NTM in accordance with a current agreement in relation to the Globeflight workplace as it currently applies.
Background
DSV, a South African company, is ultimately controlled by DSV Panalpina A/S Group (“DSV Panalpina”), a company headquartered in Denmark. DSV’s activities include (i) land, air and sea freight-forwarding services; (ii) contract logistics services; (iii) courier services; and (iv) special projects. DSV also advises on national customs and clearance, security, license requirements and regulations related to air and sea freight.
Globeflight is a South African company which provides local and international courier services via different modes of transport, including road and air. Its general courier services include the delivery of envelopes and parcels between individuals, homes and businesses. Globeflight also has a particular focus on providing courier services to optometrists and their suppliers as well as courier services for blood and blood-related products.
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