Elgin Brown and Hamer lays off 50 more employees
Following a significant decline in docking activity from the ship repair sector over the past 3 years, the Management of Elgin Brown & Hamer Namibia (EBHN) this week said that the company has entered into a further round of retrenchments which will see a further 50 employees laid off.
The first round of retrenchments was initiated in 2017 and concluded in February 2018. This exercise affected 19 non-bargaining unit employees.
On the 18 January 2019, the Board of Directors of EBH Namibia approved a company-wide turnaround strategy, including the retrenchment of 50 employees in total, of whom 49 are from the bargaining unit.
The second round of restructuring was prompted by the knock-on effect of its operating industry’s volatility and decline in business over the years.
The company in a statement said that in a further step to ensure compulsory retrenchments are kept to a minimum, early retirement and voluntary retrenchment options will also be offered to all EBH Namibia employees.
EBH Namibia also issued formal notifications to the Office of the Labour Commissioner, the recognised Mining, Metal, Maritime and Construction Workers Union and company’s bargaining unit by Friday, 1 February 2019.
“Despite the implementation of rigorous cost-cutting and efficiency optimisation measures – as well as a major new ship repair project won in February 2019, revenue streams remain unpredictable,” said Heritha Nankole-Muyoba, Acting CEO of EBH Namibia.
Nankole-Muyoba added that the restructuring process does not constitute a value judgement on anyone’s work performance.
“It is purely a measure to reduce costs and ensure long-term sustainability. However, we remain committed to following due process by complying with all legislative requirements and to ensuring that this process is conducted with the requisite levels of professionalism, sensitivity and fairness,” added Nankole-Muyoba.