This archive report was first published on 15 August 2019.
On August 15, 2019, East African Portland Cement (EAPC) revealed its decision to hire only on contract terms going forward. This move comes after the company laid off 200 employees last week, retaining 600 out of 800.
The decision is aimed at reducing operational costs, which EAPC claims have been running at KSh8 million daily. The company cited high costs and low productivity as the main reasons for the shift.
Acting Managing Director Stephen Nthei stated that employees will be allowed to reapply for positions under the new contract-based system. He emphasized that the restructuring will take place in phases, ensuring minimal disruption to operations.
Notably, EAPC has been gradually reducing its workforce and transitioning to contract jobs. As of June 2018, the company had 936 employees, comprising 448 permanent workers and 488 contract workers. The number has since decreased to 800 employees.
Under the new system, contracts will be based on a performance-based appraisal system, with EAPC focusing on rehiring employees with tacit knowledge and skills developed over time.
