This archive report was first published on 14 August 2019.
Published on August 14, 2019, East African Portland Cement Company (EAPCC) is undergoing significant restructuring to reduce its wage bill.
According to an updated notice, Acting Managing Director Stephen Nthei announced that all permanent jobs will be reviewed, and employees will be allowed to reapply, but only on contract terms.
"At the end of the process, the current employees will apply for newly configured jobs as will be defined in the new structure on a contractual basis," read a press statement from EAPC.
The company aims to operate with not more than 600 persons, which will reflect a performance-based appraisal system.
With about 800 employees split into permanent and contractual terms, the State-owned firm will terminate all existing job agreements in phases to cut costs.
As of June 2018, the firm spent Sh3.04 billion to pay 936 employees, a 96 percent jump from Sh1.56 billion spent on 1,265 employees the previous year.
Mr Nthei stated that the current total cost is very high compared to the firm's productivity, and the company has been moving towards contract jobs but has seen little reduction in costs.
