HUNDREDS TO LOSE JOBS

BIG BEND – Hundreds of workers are set to lose jobs at Ubombo Sugar Limited, due to a restructuring process.
This will result in some positions becoming redundant and other operations being outsourced.

The giant sugar manufacturing company, which employs around 2 600 workers (inclusive of seasonal employees), has announced that it was undergoing a restructuring exercise in order ‘to ensure financial sustainability’.

In a letter sent to stakeholders, dated January 9, 2019, Human Resources Manager Bongani Ndwandwe, stated that declining sugar prices and increasing costs of production had necessitated the restructuring exercise.

Threatened

“This has threatened the financial viability of the company and in response, management initiated several costs elimination initiatives which, unfortunately, have not been able to counter the effects of the high costs in the business successfully,” reads the letter in part.

In addition, he wrote: “To ensure financial sustainability, the company is reviewing its operating model and as a result, some activities and, jobs will be restructured, outsourced or made redundant”.

Furthermore, Ndwandwe revealed to stakeholders through the letter, that the affected departments include: agriculture (cane cutting and haulage), factory, finance and administration, human resources and risk and civils department.

The precise number of workers who will be affected by the restructuring exercise is still not clear but, some unions officials estimated that slightly above 1 000 employees would lose jobs.

In the letter, Ndwandwe mentioned that a total of 615 seasonal employees in the agriculture division, whose contracts are set to expire at the end of this month, would not be re-employed when the harvesting season resumes in April.

Harvesting

“Some 30 permanent jobs related to cane harvesting and crop production will be made redundant,” further reads the letter. He did not mention in the letter the total numbers of workers who would be affected in the other departments mentioned above.

Instead, he stated through the letter, that the other affected departments were still reviewing their operations and structures, adding that they were expected to be done by tomorrow (January 18).

Last Friday evening, the workers union convened a mass meeting whereby the issue of the company’s restructuring exercise was top of the agenda.
Union officials revealed to workers the departments that would be affected by the process, said a worker who attended the meeting.

“They (union officials) said they were still going to meet with management to discuss the matter. Some workers raised concern about the short notice. They felt that management should have announced earlier the plans for the restructuring exercise,” said a worker in the agriculture division.
Meanwhile, the workers union confirmed receiving a notice of redundancies from management.

“We are preparing ourselves for meaningful engagements, and do hope all statutes and agreements will be adhered to as we engage in this very sensitive matter,” reads a statement from the Swaziland Agricultural Plantation and Allied Workers Union (SAPWU).
Management of the company also confirmed that it had implemented a restructuring exercise.

“The decisions and changes that we continue to take are aimed at achieving low cost based (production), given projected price volatility in the export markets we serve,” said Ndwandwe in the statement.
He wouldn’t state the total number of workers to be affected.

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