Corporate governanceUpdate: Management drama at billion-rand JSE firm |
How did the campaign against the CEO end and is the company back on track?
JOHANNESBURG - Permanent recruitment and flexible staffing company Adcorp made headlines at the end of 2009 when allegations against its CEO surfaced from senior management. So what happened to the case?
CEO Richard Pike says he's heard nothing since a senior advocate cleared the company, and himself, of all allegations.
After the ruling, the six accusers vowed to take Adcorp to the CCMA to dispute their dismissal. The six were also entitled to take the original case to arbitration, but this option lapsed on November 6. So, it appears as if the six have left the case to die.
Pike also reports that he's just come back from a trip to meet with major shareholders, all of whom offered their support to him and the remaining management.
On the state of the business, Pike says "we're seeing a bit of recovery". Finally he can go back to running the company, instead of defending himself against an onslaught.
Pike says Adcorp has been quite involved in discussions at Nedlac (National Economic Development and Labour Council). He believes that the rulings on labour broking will be positive and sees a ban as unlikely.
He bases this on Nedlac discussions being centred around legislation and regulation, not on banning the industry. He cites a ruling in Namibia, that banning labour broking is inappropriate, as providing support for the industry in South Africa.
Write to Chris Blaine: chris@moneyweb.co.za
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