Karas Abattoir turnaround plan to avert retrenchment

A TURNAROUND strategy could shelve plans to retrench up to 150 workers at Karas Tannery and Abattoir (KAT) at Keetmanshoop, says Board Chairman Risto Kapenda.

“There is light in the tunnel to avert possible job losses,” Kapenda told The Namibian yesterday. Kapenda said KAT’s board devised a turnaround plan during last week’s restructuring deliberations aimed at securing jobs.He said they had opted to convert the plant into a game slaughtering plant and would continue to use facilities for the slaughter of small livestock.Up to 1 270 sheep are killed there daily, the former union leader said.”The board has decided to minimise job losses,” he said, adding that KAT management would brief the workers’ union after the consultative meeting.In an earlier interview, outgoing KAT Managing Director Frikkie Mouton said between 100 and 150 workers would be retrenched due to the closure of the company’s ostrich slaughtering plant, scheduled for July.Kapenda said a consultative meeting to discuss the plan would be held between the board and GIPF within the next three days.”If restructuring is the last resort after the consultation meetings, preliminary retrenchment talks followed by full negotiations would begin with the union,” he added.However, he said the move needed the approval of its majority shareholder, Government Institution Pension Fund (GIPF), before its implementation.KAT, previously known as Ostrich Production Namibia (OPN), was bailed out by the GIPF with a loan amounting to N$90 million.He said game producers and KAT management were equally committed to establishing the game slaughter plant, but could not confirm any figures of how many animals it would process.Recently Karas Governor Dawid Boois called on involved line-ministries to intervene to avert the possible job cuts.According to a report by the Agriculture Bank (Agribank) of Namibia, it has withdrawn funding to the ostrich industry, since it was no longer viable.The Government and Agribank previously pumped millions of dollars into the ostrich industry to keep it afloat.KAT is situated 20 kilometres south of Keetmanshoop.Kapenda said KAT’s board devised a turnaround plan during last week’s restructuring deliberations aimed at securing jobs.He said they had opted to convert the plant into a game slaughtering plant and would continue to use facilities for the slaughter of small livestock.Up to 1 270 sheep are killed there daily, the former union leader said.”The board has decided to minimise job losses,” he said, adding that KAT management would brief the workers’ union after the consultative meeting.In an earlier interview, outgoing KAT Managing Director Frikkie Mouton said between 100 and 150 workers would be retrenched due to the closure of the company’s ostrich slaughtering plant, scheduled for July.Kapenda said a consultative meeting to discuss the plan would be held between the board and GIPF within the next three days.”If restructuring is the last resort after the consultation meetings, preliminary retrenchment talks followed by full negotiations would begin with the union,” he added.However, he said the move needed the approval of its majority shareholder, Government Institution Pension Fund (GIPF), before its implementation.KAT, previously known as Ostrich Production Namibia (OPN), was bailed out by the GIPF with a loan amounting to N$90 million.He said game producers and KAT management were equally committed to establishing the game slaughter plant, but could not confirm any figures of how many animals it would process.Recently Karas Governor Dawid Boois called on involved line-ministries to intervene to avert the possible job cuts.According to a report by the Agriculture Bank (Agribank) of Namibia, it has withdrawn funding to the ostrich industry, since it was no longer viable.The Government and Agribank previously pumped millions of dollars into the ostrich industry to keep it afloat.KAT is situated 20 kilometres south of Keetmanshoop.