Cheetah Cement retrenchment talks ongoing

Cheetah Cement has notified the Ministry of Justice and Labour Relations of its intent to retrench 87 employees by 15 April, citing financial losses, import restrictions, and a blocked merger.

Cheetah Cement, which is owned by a Chinese company called Whale Rock Cement, last week gave notice of its intention to reduce its work force due to financial constraints.

Ministry spokesperson Maria Hedimbi yesterday confirmed the notice by Cheetah Cement.

“We confirm that the Office of the Labour Commissioner received a notice of intended retrenchment from Cheetah Cement, received on 2 March. The notice cites 87 employees in total that face retrenchment due to economic reasons.The notice is done in accordance with section 34 of the Labour Act,” she said.

Hedimbi, however, explained that the notice is simply a declaration of an intent to retrench and not a final decision.

She said this means that the company may or may not retrench, and could possibly reduce the number of employees intended for retrenchment.

“Consultations are expected to continue throughout the week,” she said, adding that further information on the matter will be revealed later.

The company’s spokesperson, Tabby Moyo, last week said a decision will be made after consultations with the ministry and the Mineworkers Union of Namibia.

Independent Patriots for Change shadow minister of justice and labour relations Elvis Lizazi describes the matter as regrettable, saying that when one Namibian loses a source of income, it affects up to 10 others, since one family member can support more than 10 people.

He said the company opened its books to the trade union and the line ministry, ruling out any self-interest by management and showing that the company is committed to retaining its employees.

“The government through the line ministry should bring the Namibian Competition Commission to the table so that a clear road map to serve employment without foregoing Namibia’s natural resources to foreigners is achieved. Namibia’s natural resources should improve the living standard of our citizens,” he says.

Labour expert Herbert Jauch argues that, given the already high levels of unemployment, any retrenchment would increase pressure on the government in its efforts to reduce Namibia’s high unemployment rate.

In terms of the Labour Act, Jauch says: “Cheetah Cement must look at different options with the union and open the financial books.

There might be other possibilities which the company has not considered. Sometimes employers want to quickly resort to retrenchment before considering other options.”

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