Unbundling State-Owned enterprises: Employee perceptions and Socio-Economic impacts

Résumé

The unbundling of a South African state-owned enterprise represents a significant structural transformation aimed at improving operational efficiency, financial sustainability, and energy transition. However, this restructuring raises concerns about its socio-economic impact on employees. This study investigates this implication by exploring employee job security and working conditions. Grounded in Organizational Change Theory, the study employs a qualitative approach and obtain insights from interviews. Findings indicate that employees experience heightened job insecurity, worsened working conditions, and uncertainty regarding future employment prospects. Despite some optimism about potential market competition most employees perceive the unbundling as poorly managed and lacking transparency. The study calls for improved employee engagement, targeted policy interventions, and enhanced communication strategies. Transparent communication strategies are recommended to mitigate employee anxiety during unbundling. These findings contribute to academic discourse on entity restructuring while providing policy-relevant insights for ensuring a more inclusive and sustainable transition. In this volatile environment, employee and external stakeholder concerns are crucial for organisation’s sustainability and competitive advantage.

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