Great North Transport (GNT) has reportedly issued a Section 189 notice under the Labour Relations Act, initiating consultations on possible retrenchments.
A Section 189 notice starts a formal consultation process and does not automatically result in job losses.
In a statement issued on Friday, the Democratic Alliance (DA) expressed concern over the reported move and called on Limpopo MEC for Economic Development, Environment and Tourism, Dr Tshitereke Matibe, to explain why retrenchments are being considered.
The party said the MEC should disclose how many employees could be affected, whether alternatives to retrenchment had been explored, and what impact the move could have on commuters who rely on GNT's services.
The DA said employees should not bear the consequences of years of financial mismanagement and governance failures, adding that retrenchment should be a measure of last resort.
The entity has been battling operational and financial instability for more than a decade, and was effectively placed under national administration between 2011 and 2015 as part of a broader intervention in the province. Numerous turnaround strategies since then have failed to pull the transport provider back from the brink. Last year, GNT suspended its CEO, CFO and COO amid allegations that the company owed millions of rand to pension fund schemes and in unpaid employee benefits.
In his budget vote speech to the Limpopo Provincial Legislature in May, Matibe said he had instructed GNT to submit a six-month turnaround plan, with progress to be reported on a biannual basis, and pledged to strengthen the entity's institutional capacity from the 2026/27 financial year onwards. He said GNT, backed by the provincial government, had purchased 71 new buses, which were expected to be delivered in batches and integrated into the network before the end of the financial year.
The DA's concerns over possible job losses follow earlier warnings about GNT's finances. In a statement issued on 23 April, DA provincial spokesperson Jacques Smalle said the party would ask Provincial Treasury to intervene under the Public Finance Management Act, citing a projected cash shortfall of up to R40 million and reliance on subsidies to meet basic obligations.