Omaruru factory shuts

UNEMPLOYMENT is set to rise sharply at Omaruru, in the Erongo Region, with the closure of a food processing factory next month.

Vandenbergh Foods, the biggest employer in the private sector at the town, will close down on March 31 for economic reasons. The closure will affect 28 full-time workers and their families.According to the Namibia Food and Allied Workers Union (Nafau), the factory retrenched about 50 employees in 1996.The manager, Walter Schmidt, told The Namibian he was not allowed to speak to the media and referred all questions to the holding company, Unifoods, in Durban, South Africa.He said he could only confirm that the closure was due to “economic reasons”.”It will have a negative impact on the economy of our town,” said Johanna Ouses, the Mayor of Omaruru, yesterday.”The factory and Government are the two biggest employers”.She said the town already had a high unemployment figure.Nafau Regional Organiser, Cleopas Ngwena, expressed concern over retrenchments in the private sector.”We urge the private sector to look at other options, rather than retrenchment, in order to fight poverty,” he said.He said Nafau and the company had concluded a retrenchment agreement, which was signed yesterday.”Negotiations were concluded in good faith by both parties.The union appreciates the reasonable package given to employees,” said Ngwena in a press statement.In terms of the agreement, workers would receive severance pay of two weeks’ remuneration for each year of service, a pro rata annual bonus, all accrued leave not taken, long service awards calculated up to December 2004, a social investment grant of N$5 000 and one month’s additional remuneration.The agreement also noted that the termination of service was “procedurally and substantively fair and in accordance with the Labour Act of 1992”.It also said that operations would cease and the production of mainly 500g margarine bricks would be relocated to Boksburg, South Africa.The closure will affect 28 full-time workers and their families. According to the Namibia Food and Allied Workers Union (Nafau), the factory retrenched about 50 employees in 1996. The manager, Walter Schmidt, told The Namibian he was not allowed to speak to the media and referred all questions to the holding company, Unifoods, in Durban, South Africa. He said he could only confirm that the closure was due to “economic reasons”. “It will have a negative impact on the economy of our town,” said Johanna Ouses, the Mayor of Omaruru, yesterday. “The factory and Government are the two biggest employers”. She said the town already had a high unemployment figure. Nafau Regional Organiser, Cleopas Ngwena, expressed concern over retrenchments in the private sector. “We urge the private sector to look at other options, rather than retrenchment, in order to fight poverty,” he said. He said Nafau and the company had concluded a retrenchment agreement, which was signed yesterday. “Negotiations were concluded in good faith by both parties. The union appreciates the reasonable package given to employees,” said Ngwena in a press statement. In terms of the agreement, workers would receive severance pay of two weeks’ remuneration for each year of service, a pro rata annual bonus, all accrued leave not taken, long service awards calculated up to December 2004, a social investment grant of N$5 000 and one month’s additional remuneration. The agreement also noted that the termination of service was “procedurally and substantively fair and in accordance with the Labour Act of 1992”. It also said that operations would cease and the production of mainly 500g margarine bricks would be relocated to Boksburg, South Africa.