LRM3701
Assignment 3
Semester 2 2025
Due 2025
, LRM3701
Assignment 3
Semester 2 2025
Due 2025
Applied Labour Relations Management Competencies
Question 1
Daily Maverick retrenchment case
(Source: salabournews.co.za)
Q1: What alternatives can be recommended to address the situation faced by the
company?
Daily Maverick’s decision to retrench approximately 5 % of its workforce and cut 15 % of
operational costs signals severe financial strain. While retrenchment is legally
permissible, it should remain a last resort due to its disruptive impact on morale,
institutional knowledge, and long-term sustainability. A more constructive response
requires a multi-pronged alternative strategy.
1. Voluntary exit and early retirement schemes
Allowing employees to exit voluntarily, or through incentivized early retirement,
can achieve cost savings with less reputational harm. This reduces forced
layoffs, though it risks losing senior expertise if not carefully managed.
2. Redeployment and reskilling initiatives
Employees could be shifted into emerging roles (such as digital content
production, data journalism, or multimedia operations). This retains institutional
knowledge while aligning the workforce with the evolving needs of the media
industry. Such redeployment requires investment in targeted training.
Assignment 3
Semester 2 2025
Due 2025
, LRM3701
Assignment 3
Semester 2 2025
Due 2025
Applied Labour Relations Management Competencies
Question 1
Daily Maverick retrenchment case
(Source: salabournews.co.za)
Q1: What alternatives can be recommended to address the situation faced by the
company?
Daily Maverick’s decision to retrench approximately 5 % of its workforce and cut 15 % of
operational costs signals severe financial strain. While retrenchment is legally
permissible, it should remain a last resort due to its disruptive impact on morale,
institutional knowledge, and long-term sustainability. A more constructive response
requires a multi-pronged alternative strategy.
1. Voluntary exit and early retirement schemes
Allowing employees to exit voluntarily, or through incentivized early retirement,
can achieve cost savings with less reputational harm. This reduces forced
layoffs, though it risks losing senior expertise if not carefully managed.
2. Redeployment and reskilling initiatives
Employees could be shifted into emerging roles (such as digital content
production, data journalism, or multimedia operations). This retains institutional
knowledge while aligning the workforce with the evolving needs of the media
industry. Such redeployment requires investment in targeted training.
