The Department of Water and Sanitation (DWS) says the termination of employment contracts for 178 workers on the Vlakfontein Canal Rehabilitation Project in Standerton does not constitute a retrenchment process but stems from the discontinuation of the project to which their employment was linked.
The department said the affected employees were appointed on project-based contracts tied specifically to the implementation of the Vlakfontein Canal Rehabilitation Project, and that their contracts would conclude on 30 June 2026 following a decision to discontinue and de-establish the project.
The department said it was providing clarity on the matter due to public interest and concerns about the impact on affected workers and their families.
The Vlakfontein Canal Rehabilitation Project was launched in 2015 as a major infrastructure initiative aimed at improving water conveyance and irrigation systems in the area.
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At its inception, the project employed 241 local workers, and by 2026, the workforce had declined to 178 employees through retirements and resignations.
According to the department, the project was initially scheduled for completion within 48 months but experienced significant delays due to a combination of operational, technical and financial challenges.
Following a comprehensive assessment of the project's performance, progress and long-term sustainability, the department decided to discontinue the rehabilitation programme.
The department explained that the Vlakfontein Canal supplies water to strategic users, including Eskom, Sasol and municipalities in the region. Rehabilitation work was undertaken during scheduled dry periods, with water supply supported by the Vaal River Eastern Sub-System Augmentation Project (VRESAP).
However, operational deficiencies within the VRESAP system have limited its ability to provide reliable alternative supply for extended periods, making it difficult to shut down the canal long enough to complete rehabilitation work without compromising water security for key users.
"The constrained use of VRESAP means that the Vlakfontein Canal cannot be shut down for rehabilitation for extended periods of time without detrimentally affecting the assurance of supply to users," the department said in a statement.
The department indicated that the rehabilitation project could be revived once the VRESAP system becomes reliably operational, and should this occur, consideration would be given to reappointing workers on the same project-based contractual basis.
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DWS said consultations had been held with affected employees and organised labour following the decision to discontinue the project. Discussions took place through the Departmental Bargaining Chamber, where information relating to the project's status and the reasons for its discontinuation was shared.
The department said it recognised the impact the decision would have on workers and their families and had engaged with employees throughout the process to provide clarity and support during the transition period.
As of 22 June 2026, 61 affected employees had collected and acknowledged receipt of their termination letters.
The department said all contractual and legal obligations would be honoured.
"Affected employees will receive all benefits due to them, including payment of accumulated leave, a pro-rata bonus, payment in lieu of notice for employees who elect not to serve the notice period, and severance-related benefits in accordance with applicable conditions of service. Benefit payments are scheduled to be processed by 31 July 2026," the department said.
The department acknowledged the contribution made by employees throughout the lifespan of the Vlakfontein Canal Rehabilitation Project and appreciated their dedication and service over the years.
"Support measures have been put in place to assist affected employees during this transition, while engagement continues through the appropriate labour relations structures," it said.
