Nairobi — East African Portland Cement has withdrawn the notice it issued Thursday firing its entire workforce.
In a statement, EAPCC Managing Director Stephen Nthei says the company shall be making a fresh replacement notice on the intended company restructuring in due course.
"The company currently has 750 workers, but we want to bring the number down to 600," Nthei said, adding that part of the company's operations is suffering from redundancy.
Additionally, the company says it will allow its workers to take pay cuts as well as reapply for their jobs on new terms.
The loss-making cement manufacturer had announced the layoffs plans Thursday on account of massive losses amounting to Sh8 million per day.
The move was expected to affect both unionisable and non-unionisable workers in the company.
The cash strapped company reported a 30 percent increase in loss to Sh1.26 billion for the half year ended December 2018 up from the Sh949.2 million loss it posted six months before.
This was attributed to an increase in output prices, a sluggish market and production challenges, arising from the company's tight working capital position.
Analysts have attributed the recent development by the once giant cement maker to a depressed economy that has been mainly affected by the capping of interest rates.
Read the original article on Capital FM.
AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.
Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.
AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 150 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Monrovia, Nairobi and Washington DC.