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Namibia: Cross Country Faces Uncertain Future
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The Namibian (Windhoek)
9 May 2008
Posted to the web 9 May 2008
Denver Isaacs
THE fate of 300 workers at Cross Country Carriers is in balance as the owner is uncertain about the future of the company.
News that owner Leon Taljard was in the process of selling the company emerged yesterday, when workers decided to down tools following the courier company's failure to pay their April salaries.
According to union representatives, the company merely told them in a letter on April 23 that it planned to undergo a restructuring process.
The Namibia Transport and Allied Workers Union (Natau) has requested staff records from the company to set negotiations in motion.
Natau Regional Co-ordinator Likius Vilho said yesterday that the company had not yet responded to their request, as well as a similar request made last week by the Office of the Labour Commissioner.
While many of the workers said they had heard rumours a few weeks earlier that Taljard planned to sell his business, it was only confirmed to them by union representatives following a letter from the company boss yesterday.
Cross Country Carriers attributed its financial troubles to the loss of a major client on April 14.
The client in question owes Cross Country Carriers N$500 000.
"Since that time I have been unsure about the business, it's difficult to say what exactly will happen now.
I am in the process of negotiations with various companies to take over different departments of the company," Taljard wrote in the communication with the union.
Another of his companies, Namibia Freight Consolidators, was also up for sale, Taljard said.
He said that the money from the sale of that company would likely be used to pay the outstanding salaries of his workers.
Workers at Cross Country Carriers were promised that their salaries would be in by 12h00 today.
Workers who have been with the company for many years expressed scepticism about the closure.
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They referred to a similar episode in 2004, when the company allegedly threatened to retrench its entire workforce of 202 people.
At that time it also cited financial difficulties, adding that they would not have been able to comply with the 2002 labour law's stipulation that it gives four weeks' notice before effecting the closure.
Attempts to get comment from Taljard proved unsuccessful, as he was said to be locked in meetings the whole of yesterday.
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