This archive report was first published on 14 August 2019.
On August 14, 2019, East African Portland Cement Company (EAPCC) announced plans to restructure its workforce by terminating all permanent jobs and hiring employees on contract terms.
The company, which has been struggling financially, aims to reduce its wage bill by adopting a performance-based appraisal system.
According to an updated notice on the company's restructuring staff rationalisation programme, Acting Managing Director Stephen Nthei stated that all jobs will be reviewed, and employees will be allowed to reapply, but only on contract terms.
At the end of the process, current employees will apply for newly configured jobs as defined in the new structure on a contractual basis, as per a press statement from EAPC.
The company regrets the impact this will have on affected employees and aims to operate with not more than 600 persons.
As of June 2018, the firm had 936 employees, with 448 on a permanent basis and 488 on contract. The headcount has since dropped to about 800, with only about 25 people expected to still have running contracts by the end of December 2019.
The company's restructuring costs are estimated to be around Sh600 million.
