Namibia Dairies institutes temporary 20% salary reductions
Due to the negative impact of the pandemic on the dairy industry, Namibia Dairies introduced temporary 20% salary reduction measures to be implemented, effective 01 August to 31 October 2021.
In a statement issued on 06 August, managing director of Namibia Dairies, Leonie Prinsloo, also stated that the company has recently re-organized its Sales and Human Capital Departments that were identified as a critical measure to be efficient and save costs.
“This was by no means an easy decision, but it was the responsible and necessary action to ensure a future for our people and business. We have an opportunity to be part of creating a legacy and owning the future of a new sustainable Namibia Dairies,” Prinsloo said.
The dairy producer has been in a negative cash flow situation for a prolonged period with its shareholder (O&L) having injected millions over the past two years to keep the company’s operations afloat.
“Our focus during this crisis thus far was to trade our way out of a difficult situation, where the focus was on revenue generation, cost reduction without impacting standards, and the simultaneous safe-guarding of livelihoods. Some of the measures included a reduction on overtime costs, revisiting operational expenses, optimizing delivery routes, reviewing external agency business opportunities, extensive investigation of product profitability, negotiating better supplier rates and freezing and only filling vacancies that were absolutely critical to business continuity amongst others, up to the newly introduced temporary business rescue measures,” Prinsloo added.