East African Portland Cement Company (EAPCC) has announced a voluntary early retirement for its staff as part of a continuing rationalisation programme.
Acting managing director Stephen Nthei said in a statement, the move is part of the company’s strategies to achieve sustainable operational costs in view of current levels of productivity.
The programme is open to all employees, with applications expected between May 28 and June 15.
“The management and board of directors envisages that this programme shall support the company’s initiative to develop a sustainable business model in the long run for posterity,”Nthei said.
According to management, the cement industry has witnessed a significant decline in productivity, resulting in depressed revenues and manpower utilisation leading to unprecedented job losses.
The latest developments come barely four months after the cement maker terminated contracts of an estimated 150 employees in administrative roles.
On Thursday, Nthei affirmed that the company will be in continuous consultation with staff to ensure that they receive the support they need throughout the process “in a humane manner.”
“Our primary intent is to be as transparent as possible and provide our people with choices as we continue to reshape our business as a win-win approach to staff issues,” he said.
He added that EAPCC is committed to regaining its position as the regional leader in the provision of cement , innovative cement products and solutions.
“The restructuring takes cognizance the interests of the various stakeholders in the course of the business rejuvenation processes,” Nthei said.
EAPCC’s net loss widened to Sh1.5 billion in the six months to December 2019 from Sh1.2 billion in a similar period in 2018.
Staff costs were at an estimated Sh4 billion last year consuming up tot 80 per cent of the company’s sales, which were recorded at Sh5 billion in 2018.