EA Portland Cement spares at least 600 employees from job lossAugust 15, 2019
NAIROBI, Kenya, Aug, 15- East African Portland Cement has asked all its employees to apply afresh for the newly configured jobs, adding that it intends to retain 600 workers from its current 1,000.
Acting CEO Stephen Nthei says the move is part of the company’s ongoing restructuring plan that will see current employees retained or let go based on a performance appraisal.
“…We will ensure that we offer enhanced severance pay to ensure that we make this transition as smooth as possible,” Nthei said in a statement adding that the programme will be implemented on a phase based approach to allow the continuity of normal operations.
This comes barely a week after the loss making cement manufacturer announced it would be firing all its employees in a bid to cut operational costs.
“As part of the restructuring programme, all positions in the company will be declared redundant and the employees released,” EAPCC said in a memo.
Nthei revealed the Nairobi Securities listed company has been making losses of up to Sh8 million daily which has impacted negatively on sales and subsequent profitability, hence the move.
A day later, the cement maker withdrew its notice saying it would issue a replacement notice to its employees on the intended restructuring programme.
The cash strapped company reported a 30 percent increase in loss to Sh1.26 billion for the half year ended December 2018 up from the Sh949.2 million loss it posted six months before.
The company attributed the heavy loss to increased output prices, a sluggish market and production challenges, arising from the company’s tight working capital position.