This archive report was first published on 8 August 2019.
Portland Cement Fires Entire Workforce ¶
On August 8, 2019, East African Portland Cement (EAPCC) made a shocking announcement, declaring its entire workforce redundant and asking them to reapply under new terms.
The company cited losses of up to Sh8 million every day and a drastic reduction in market share over the past three years as the reasons behind this unprecedented decision.
According to a leaked internal memo signed by acting managing director Stephen Nthei, the company's market share has drastically reduced, impacting negatively on sales and subsequent profitability.
Mr Nthei attributed this decline to increased competition and inadequate working capital, stating that the company's basic challenges touch on its ability to meet crucial performance indicators, including staff costs.
As a result, the company is now faced with the need to restructure its operations, which will include a staff rationalisation programme to balance the institution's running costs and current levels of productivity.
Under the terms of termination, staff will be given a notice period according to their individual contracts, as well as severance pay for 30 days for every year worked and payment of all accrued gratuity to the date of separation.
They will also be paid their accrued leave days and encouraged to compete for the few positions that will be created in the new organisation.
