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08:04Last update on: 13 Aug 2013
The Namibian
Tue 13 Aug 2013


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Meatco won’t renew 400 contracts
Ndanki Kahiurika
LAYING OFF ... Meatco’s Jannie Breytenbach, Vekuii Mbura announced yesterday that the company will not Rukoro, Nico Weck and Stanley Hoveka renew contracts of around 400 workers.
THE Meat Corporation of Namibia (Meatco) is to let go of over 400 contract workers on Monday as a way of cutting losses caused by the recent decline in cattle volumes.
• NDANKI KAHIURIKA
The country’s biggest beef exporter announced yesterday that the drought has, amongst other factors, made it impossible for the company to keep the Windhoek and Okahandja abattoirs running, placing 400 workers in the firing line.
According to Chief Executive Officer Vekuii Rukoro, the cattle volume had reduced from an annual 128 000 to around 90 000 this year. For next year they expect only 78 000 cattle.
Rukoro said abattoir throughout started to decline considerably this month already and for August Meatco will only have around 6 000 cattle available to slaughter.
“This is a very low number and will not be able to economically sustain operations at both facilities.”
“The supply of slaughter cattle in Namibia is now reaching near criticial levels, and as we have learned from the previous drought of 1996/7, it will take at least five years to stabilise,” Rukoro said.
Rukoro also added that the decision is aggravated by the government’s inability to maintain the open borders, which has led to over 132 400 cattle being sold to South Africa from January to June this year. Last year during the same period only 48 000 live cattle were sold to South Africa.
“This is an alarmingly significant amount of cattle that have left the country,” he said.
Most of the cattle sold across borders are of breeding kind, which means they could have been used for restocking in the future, added Rukoro.
“We are left with two choices, to either close one of the factories altogether or allow our temporally employed workers to leave. We opted to follow that route,” said Rukoro after adding that the company had to ensure survival and deemed it fit to scale down its operations.
The company, which employs over 1 700 workers, claimed that the workers will not be given any packages as they are not retrenching them but rather just discontinuing their contracts, which were to end in August anyway.
The company also claimed to have a strategy in place to fund workers who lose their jobs.
Although the company did not give details they said SMEs Compete, a training organisation, will give the workers a chance for self-employment.
Meatco stopped slaughtering sheep in May this year due to losses they made over the five years of business. They indicated that the slaughtering of sheep was not their core business and sheep farmers had preferred to use abattoirs closer to them.
The state- owned enterprise was also involved in a struggle of ownership with the government.
Recently, agriculture minister John Mutorwa announced that the voting has started for a new board for Meatco.
One of the retrenched workers said their Okahandja plant manager Gert Olivier informed them on Friday that they will get paid the salary of a week for every year that they have worked but he claimed it is not a retrenchment.
“He told us that we cannot continue our work there but that after two years there might be jobs for us,” said the worker.
Olivier could not be reached to verify the statement by the worker as calls to his cellphone kept going to voice mail.
The contract workers allegedly reported the issue to the Namibia Food and Allied Union but there has been a delay from the union’s side.
Nafau’s Simon Muukapi said the delay was caused by gaps in the information provided to them.
The country’s biggest beef exporter announced yesterday that the drought has, amongst other factors, made it impossible for the company to keep the Windhoek and Okahandja abattoirs running, placing 400 workers in the firing line.
According to Chief Executive Officer Vekuii Rukoro, the cattle volume had reduced from an annual 128 000 to around 90 000 this year. For next year they expect only 78 000 cattle.
Rukoro said abattoir throughout started to decline considerably this month already and for August Meatco will only have around 6 000 cattle available to slaughter.
“This is a very low number and will not be able to economically sustain operations at both facilities.”
“The supply of slaughter cattle in Namibia is now reaching near criticial levels, and as we have learned from the previous drought of 1996/7, it will take at least five years to stabilise,” Rukoro said.
Rukoro also added that the decision is aggravated by the government’s inability to maintain the open borders, which has led to over 132 400 cattle being sold to South Africa from January to June this year. Last year during the same period only 48 000 live cattle were sold to South Africa.
“This is an alarmingly significant amount of cattle that have left the country,” he said.
Most of the cattle sold across borders are of breeding kind, which means they could have been used for restocking in the future, added Rukoro.
“We are left with two choices, to either close one of the factories altogether or allow our temporally employed workers to leave. We opted to follow that route,” said Rukoro after adding that the company had to ensure survival and deemed it fit to scale down its operations.
The company, which employs over 1 700 workers, claimed that the workers will not be given any packages as they are not retrenching them but rather just discontinuing their contracts, which were to end in August anyway.
The company also claimed to have a strategy in place to fund workers who lose their jobs.
Although the company did not give details they said SMEs Compete, a training organisation, will give the workers a chance for self-employment.
Meatco stopped slaughtering sheep in May this year due to losses they made over the five years of business. They indicated that the slaughtering of sheep was not their core business and sheep farmers had preferred to use abattoirs closer to them.
The state- owned enterprise was also involved in a struggle of ownership with the government.
Recently, agriculture minister John Mutorwa announced that the voting has started for a new board for Meatco.
One of the retrenched workers said their Okahandja plant manager Gert Olivier informed them on Friday that they will get paid the salary of a week for every year that they have worked but he claimed it is not a retrenchment.
“He told us that we cannot continue our work there but that after two years there might be jobs for us,” said the worker.
Olivier could not be reached to verify the statement by the worker as calls to his cellphone kept going to voice mail.
The contract workers allegedly reported the issue to the Namibia Food and Allied Union but there has been a delay from the union’s side.
Nafau’s Simon Muukapi said the delay was caused by gaps in the information provided to them.
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(August 13)
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