By Edna Mwende
East African Portland Cement Company (EAPCC) will now be hiring on contractual terms only as it looks to lower its wage bill and maintain 600 of its 1,000 employees according to an updated notice on the company’s restructuring staff rationalization programme.
According to a news report by the Business Daily, acting Managing Director Stephen Nthei says all jobs will be reviewed and employees are allowed to reapply, but only on contract terms.
“At the end of the process, the current employees will apply for newly configured jobs as will be defined in the new structure on a contractual basis,” a press statement from EAPCC read as quoted by the Business Daily.
The Business Daily further reported that this will reflect a performance-based appraisal system as the company works on a plan to operate with not more than 600 employees, which will see all positions in the company declared redundant.
Mr. Nthei added that the company had held consultations with relevant stakeholders to ensure the process is carried out fairly with the affected staff being offered a compensation package.
The company revealed it had been recording Ksh8 million in daily losses, worsening its already bad financial position, making its turnaround strategy unsustainable.
The restructuring programme, Mr. Nthei said, will be implemented on a phased basis to ensure that normal operations are not disrupted and will maintain its costs at Ksh600 million.
The cement maker had 936 employees, whom the company spent Ksh3.04 billion on at the end of June 2018 and since then, that number has dropped to 800 with Mr. Nthei saying only about 25 people will still be with running contracts by end of December 2019 according to the Business Daily news report.