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Cairns Holdings to retrench 50 %

by Staff Reporter
03 Jun 2016 at 06:46hrs | Views
The country's sole food and beverages manufacturer, Cairns Holdings' have offered a voluntary retrenchment package to its employees.

It was reported that the company plans to reduce its workforce by 50 percent from the current 524.

The company offered a package at 2 weeks' salary for every year served as service pay, notice payment of 3 months' salary and applications for the terminal dues were opened since February this year.

''Management has been encouraging workers to tender applications for the  package since February. They claimed that the firm is over staffed. However, many workers were not forthcoming because we felt the package is not attractive especially on service pay,'' said one of the workers who decided not to be named.
Inside managerial sources revealed that about 15 employees who had served long at Mutare Factory applied for the package whilst over 90 workers across the firm's branches nationwide had shown interest.

'' I can confirm that a total of 93 workers across our branches countrywide applied for the packages. However, no application have been endorsed yet because the arrangement is that management reserves the right to approve an application,'' said one of the sources.

Some of the company ' s workers ' representatives claimed that the retrenchment was not necessary alleging that it merely targeted unwanted long serving and permanent employees in a move they viewed as intentions of introducing Labour Market Flexibility by their management.

''The real motive of our investor is to do away with employees employed on permanent basis.

The claim by management that the company is overstaffed at this point in time is a gross misrepresentation of reality just to score their goal. The company wants and has since started hiring and firing labour. Currently, at most branches there are more contract workers employed monthly because production had overwhelmed the few permanent employees,''

said one of the representatives who requested anonymity for fear of victimisation. At Mutare Fruit and Vegetable Plant the workers said there are 74 permanent employees whilst contract workers employed on monthly basis are 95.

They reported that production at the plant had surged so much that there were 2 shifts for day and night revealing that they have been also working overtime on daily basis.

When contacted for a comment, the company's Human Resource Manager, Tendai Muzadzi said he was not allowed by the company policy to respond to the press.

Cairns recently commissioned a $280 000 baked beans plant in Mutare which was imported from China.

The firm in the past months also resuscitated an out growers programme by re-engaging contract farmers countrywide as it reported that there was an increase in demand for the raw materials at the company.

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Source - The Worker