M&F to lay off 600 workers

Fri, 04 Jul 2008

Short term insurer Mutual and Federal will lay off about 600 of its 3000 staff by the end of the year, SABC radio news reported on Friday.

Mutual and Federal chief executive Keith Kennedy told the public broadcaster that the company was in talks with its employees.

It will offer them early retirement and retrenchment packages.

Staff costs account for about 65 percent of the company's total costs.

SABC reported that insurance claims have increased since 2005 and that the costs of repairing damaged vehicles have also climbed, placing the company under pressure.