More than 300 workers at Sun casinos may lose their jobs

Some 327 Sun International employees may soon lose their jobs as the group looks to cut costs and boost profit margins at four underperforming casinos. A Section 189 process is under way at Windmill Casino in Bloemfontein, and at three other casinos owned by Sun International. Sun International confirmed on Monday that a Section 189 consultation process, which is required by law before retrenchments can be implemented, was under way at Windmill Casino in Bloemfontein, Golden Valley in Worcester, Meropa in Polokwane, and Flamingo in Kimberley. The planned retrenchments are part of its 'Casino Lite' strategy aimed at cutting costs and boosting profit margins at underperforming casinos. Zandile Mposelwa, public affairs director at Sun International, says the strategy involves 'optimising gaming' operations, growing revenue through insourcing food and beverage outlets, and workforce 'rightsizing and productivity improvements'. On the same day it confirmed the planned job cuts, Sun International released its results for the six months to end-June, which showed a 36% revenue increase at its online gambling business, Sunbet. Analysts were pleasantly surprised by the performance of its physical casinos, including GrandWest in Cape Town and Carnival City in Brakpan, which returned to growth after three years of decline, with revenue up 1.5% to R3.4 billion. Still, the group's profit margins declined due, in part, to big investments in technology. Some 150 key appointments were made over the past six months, which focused on data, technology and cybersecurity. The South African Commercial, Catering and Allied Workers Union previously rejected the retrenchment process, and called on provincial gambling and gaming boards to investigate whether Sun International continues to comply with employment, transformation and public interest obligations as required by its gaming licences. Mposelwa said the consultation process was ongoing with employee representatives, including Saccawu. Step into a world where the truth shines bright, and every headline is worth your time. With News24, you're not just reading the news; you are part of a community that values knowledge and insight. Immerse yourself in compelling stories, sharp analyses, and content that keeps you ahead of the curve. Bruce Whitfield's Business Week Get each new episode of Bruce Whitfield's weekly podcast delivered to your inbox to hear his take on business without the boring bits. This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.