Addis Abeba — More than 200 workers at the Tana Beles Sugar Factory are protesting their reassignment to temporary employment and manual labor roles. In interviews with Addis Standard, the workers disclosed that this demotion and reassignment to daily labor followed the introduction of a new organizational structure a month ago.
One worker, who requested anonymity for safety reasons, said he had worked at the factory for over 13 years. He explained that a month ago, the company implemented a new structure, resulting in his and several colleagues' reassignment to manual labor.
"Most of us had been working as day laborers for nine years. After we were made permanent employees, the company told us that it was in danger and that if we, the lower-level employees, wanted to save the company, we had to step down and continue working as day laborers," he explained.
This employee noted that he previously held a Level 4 position with a monthly salary of 5,000 birr. Under the new structure, his income is at risk of significant reduction.
"Now, the maximum I could earn per month might only be 2,500 birr," he said. "I am the breadwinner for my family. I have two children and also support my siblings and parents."
According to this worker, at least 186 employees below Level 7 position were reassigned to manual labor, while an additional 106 workers were left without job assignments and are owed six months' salary.
Ayene Kassa (name changed for safety reasons), another factory worker, told Addis Standard that employees above Level 7 position were transferred to the Omo Kuraz, Metahara, and Wonji sugar factories. Those below Level 7, however, had their permanent contracts terminated and were reassigned to manual labor.
"A total of 236 workers have been downgraded to manual labor roles despite serving the factory for up to 11 years as permanent employees," he explained. "The manual labor roles include jobs like cutting sugarcane."
Ayene said he used to work in the property department. "My colleagues, who worked as drivers and security guards, and I are now paid based on the amount of work we do each day," he added.
Ayene emphasized that his and his colleagues' new pay depends solely on their daily labor output.
"If you are cutting cane, you are paid 36 cents per meter," he explained. "That too is paid after you cut and pile the sugarcane in the designated area."
Ayene, who previously earned a net monthly salary of 6,698 birr, said that being demoted will reduce his income, putting his family's well-being at risk.
"Since it's now daily work, even if you work hard, you might only earn 1,000 birr a month," he said. "I have two children and a wife who is a housewife. This money cannot even support me, let alone a family."
Another factory worker, who requested anonymity for safety reasons, confirmed that a notice was posted at the factory listing the names of employees below Level 7 and informing them of their contract terminations and reassignment to manual labor positions.
He pointed out that many of those affected are members of the local community, stating, "The factory acquired their land with the promise of opportunities, so this sudden action has caused frustration and resentment."
The worker added, "Even if the factory intended to lay us off, it should have provided proper severance benefits rather than simply canceling our contracts and forcing us into daily labor," he protested.
Additionally, he claimed that while some employees were transferred to other factories, 106 workers have gone unpaid for five months and have not been assigned any roles.
Located in the Jawi district of Awi Zone within the Amhara Regional State, Tana Beles Sugar Factory was inaugurated in June 2021. Constructed by China CAMC Engineering Co. Ltd. at a cost of $95 million, the facility boasts a daily crushing capacity of 12,000 tons of sugarcane, producing up to 12,000 quintals of sugar. With a workforce exceeding 15,000 employees, the factory had been operating under the supervision of the Ethiopian Sugar Industry Group until it became autonomous in 2022 by the decision of the Council of Ministers.
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Despite its production capabilities, workers report that operations have yet to commence due to persistent challenges.
In November 2024, the factory's public relations department issued a statement on its social media platform, outlining the difficulties facing both the factory and its employees. Chief among these issues are insufficient budget allocations for operations and a two-year failure to repair a faulty power transformer at the Kunzila substation.
"As a result of the financial constraints, the factory was unable to pay employee salaries, plunging over 15,655 workers and their families into severe hardship," the statement reads. "Despite the factory management's efforts to collaborate with various stakeholders to find a solution, no immediate resolution has been achieved."
Addis Standard made repeated attempts to contact Maru Tefera, chairman of the Tana Beles Sugar Factory Workers' Union, and Alemu Ferede, head of the factory's human resources department, via telephone. However, these efforts were unsuccessful as the individuals did not respond to their calls.
