Karas Abattoir and union agree on layoffs

KARAS Abattoir and Tannery (KAT) and the Namibia Food and Allied Workers’ Union (Nafau) have reached agreement on voluntary retrenchment packages for about 72 workers.

The retrenchments, which were scheduled for the end of August, had to be postponed until the end of this month because the parties had failed to agree on the packages. The parties last week agreed on three months’ full pay, one and half week’s severance pay for every year worked and compensation for accumulated leave.In addition, the retrenchment packages include bonus payments calculated on a pro rata basis for eight months, long-service bonuses of N$750 and a relocation allowance of N$600.The packages will be exempt from tax and will be payable on or before September 29.The retrenchments were necessitated by the closure of the company’s ostrich-slaughtering plant south of Keetmanshoop.In an attempt to rescue the sinking ostrich industry in the South, the Government, through Agribank, pumped in millions of dollars to keep the industry afloat.However, Agribank said last year that the ostrich business was not as viable as had been anticipated.The parties last week agreed on three months’ full pay, one and half week’s severance pay for every year worked and compensation for accumulated leave.In addition, the retrenchment packages include bonus payments calculated on a pro rata basis for eight months, long-service bonuses of N$750 and a relocation allowance of N$600.The packages will be exempt from tax and will be payable on or before September 29.The retrenchments were necessitated by the closure of the company’s ostrich-slaughtering plant south of Keetmanshoop.In an attempt to rescue the sinking ostrich industry in the South, the Government, through Agribank, pumped in millions of dollars to keep the industry afloat.However, Agribank said last year that the ostrich business was not as viable as had been anticipated.