DWS Clarifies End of Contracts for 178 Canal Project Workers

The Vlakfontein Canal Rehabilitation Project was launched in 2015 to improve water conveyance and irrigation infrastructure in the region.

The Department of Water and Sanitation (DWS) has clarified that the termination of employment contracts for 178 workers linked to the Vlakfontein Canal Rehabilitation Project in Standerton should not be regarded as a retrenchment process. According to the department, the affected employees were appointed on project-based contracts that were tied specifically to the implementation of the rehabilitation project. With the decision to discontinue and de-establish the project, those contracts will come to an end on 30 June 2026.

The department issued the clarification following public concern about the impact the decision could have on workers and their families. Officials stressed that the conclusion of the contracts is directly linked to the closure of the project and not to a workforce reduction exercise within the department.

Operational challenges led to project discontinuation

The Vlakfontein Canal Rehabilitation Project was launched in 2015 to improve water conveyance and irrigation infrastructure in the region. At the start of the project, 241 local workers were employed. That number gradually declined to 178 by 2026 through resignations and retirements.

Although the project was originally expected to be completed within four years, progress was affected by a range of operational, technical and financial difficulties. Following a review of the project's performance and long-term viability, the department decided to discontinue the rehabilitation programme.

The Vlakfontein Canal remains a critical water supply route for major users, including Eskom, Sasol and several municipalities. Rehabilitation work could only take place during planned dry periods when water supply was supplemented through the Vaal River Eastern Sub-System Augmentation Project (VRESAP).

The department explained that operational shortcomings within the VRESAP system have limited its ability to provide a reliable alternative water supply for extended periods. As a result, shutting down the canal for the time needed to complete rehabilitation work could place water security for key users at risk. DWS said the rehabilitation project may be reconsidered in the future once the VRESAP system is able to operate reliably enough to support extended canal shutdowns.

Employees to receive benefits and transition support

The department said consultations were held with affected workers and organised labour after the decision was made to discontinue the project. These discussions took place through the Departmental Bargaining Chamber, where employees received information on the reasons behind the closure and the implications for their contracts. As of 22 June 2026, a total of 61 employees had collected and acknowledged receipt of their termination letters. DWS said all legal and contractual obligations towards affected workers will be fulfilled. Employees will receive accumulated leave payments, pro-rata bonuses, payment instead of notice where applicable, and severance-related benefits in line with relevant conditions of service.

The department expects all benefit payments to be processed by 31 July 2026. Officials also indicated that if the rehabilitation project resumes in future, consideration will be given to reappointing workers on the same project-based contractual arrangements. While acknowledging the difficult impact of the decision, the department thanked employees for their years of service and commitment to the project. Support measures have been introduced to assist workers during the transition period, while engagement with labour representatives continues through established labour relations structures.