East
African Portland Cement backed away from a plan to dismiss its entire
800-strong workforce on Friday, saying it would make a further statement about
restructuring the company.
Kenya
media reported earlier on Friday that the company had dismissed all of its
workers. The Daily Nation newspaper cited an internal memo written by acting
managing director Stephen Nthei saying the cement maker planned to rehire 600
of the staff, but on 40% of their previous pay.
“(The)
notice has been withdrawn,” Nthei said in a letter addressed to the Kenya
Chemical Workers Union and seen by Reuters.
“A fresh
replacement notice on the intended company restructuring and staff rationalisation
shall be circulated in due course,” the letter said.
Portland
is 52% owned by the government and LafargeHolcim owns a 41.7% stake.
Portland
swung to a pre-tax profit of 6.96 billion shillings ($67.41 million) in the
year to end June 2018 after a loss of 1.71 billion shillings in the previous
year. It has not released figures for fiscal year 2019.
It said last year it held a market share of 11%. Portland’s rivals include Bamburi Cement and National Cement Company, which in May signed a deal to buy ARM Cement after it was put into administration last August by creditors over debts totalling $190 million.http:// https://af.reuters.com/article/investingNews/idAFKCN1V00B2-OZABS
