WHILE many South Africans fear this year’s recession may rob them of eagerly awaited end-of-year bonuses and 13th cheques and put a damper on their festive season, most major Eastern Cape employers say their workers have nothing to worry about.

A recent South African survey revealed 81% of businesses would give their employees smaller bonuses than last year due to the current economic climate, while the rest indicated they would not be giving these incentives at all.

Bay economist Dr Neal Bruton said he suspected the national picture would be mirrored in the Eastern Cape as the province was “probably the hardest hit in the country” – especially considering its reliance on the struggling motor industry.

But major Eastern Cape employers, even those in the embattled motor industry, said their employees would be giving their “normal” bonuses and 13th cheques this year.

Spokesman for General Motors South Africa in Port Elizabeth, Gishma Abrahams, said despite the economic crisis its workforce would receive 13th cheques, as these were part of a “contractual agreement” with employees.

This policy is adopted by most major motoring companies. Volkswagen South Africa general manager of communications Bill Stephens said the same scheme applied at the company’s Uitenhage plant and would not be affected by the recession.

Daimler Chrysler South Africa, which has a plant in East London, also has a contractual commitment of a 13th cheque for employees.

Solidarity labour expert Johan Kruger said a contractual bonus had to paid out. “If it is not, then the employee has a labour case and can fight it in court,” said Kruger.

Discretionary bonuses were another ball game as they did not have to be paid out, he added.

“But if year on year the bonuses have been paid out and it’s almost become common practice – and employees rely on these bonuses – then employers should notify their workers in advance if they won’t be paid out.”

Port Elizabeth Regional Chamber of Commerce and Industry chief executive Kevin Hustler said a year-end bonus usually depended on company performance and management’s discretion. “In the current economic climate, where business is challenged to manage expenses very tightly, such bonuses are likely to be small, depending on the individual company.”

But bonuses still seem to be on the cards for many in the Eastern Cape.

Spokesman for Inkanyezi Event in the Bay, Deon Engelke, said the business had had a good year and therefore bonuses would be paid.

Atlas Security spokesman Gareth Wilson said bonuses depended purely on work performance and would not be affected by the economy.

But some workers in the building industry have been less fortunate. Cathy Strydom, of Siya Zama Building and Renovation in the Eastern Cape, said: We’ve been preparing our employees for a smaller bonus.”

A brick manufacturer with branches around the province has been so battered by the downturn that after three stages of retrenchments it is still not be able to give employees a bonus this year. The company, which did not want to be named, has opted to give its staff extra leave instead.