EAPC restructuring enters final phase

EAPC restructuring enters final phase
03 September 2020

The restructuring of East African Portland Cement Co (EAPC)’s human resources in Kenya is entering its final phase with 270 employees seeing their permanent contracts converted to contract terms.
Speaking during a consultative meeting with the permanent staff, the acting MD, Stephen Nthei, said the strategic objective is to reduce administrative costs as outlined in the turnaround strategy adopted by the board and to comply with regulations outlined by the State Corporations Advisory Committee.

“The Board has taken a position that we must comply with the regulatory position to operate under a 30-70 model. This means the company should run on 30 per cent of administrative staff and 70 per cent production staff,” Mr Nthei said.

“As we all know, the company has also been running in the past against the directive by SCAC (State Corporations Advisory Committee) on the wage bill. To this end, the Board developed a new salary structure which is to be filed with the State Corporations Advisory Committee to ensure compliance,” he added.

“Every staff will be accorded one month salary for every year worked, there is also the issue of the notice period which is three months, among other benefits articulated in the redundancy notice. The company does not have funds to pay the entire amount however, the board has started a programme to raise the money. The cash arising from this will be utilised to settling the staff obligations,” Mr Nthei said.

Published under Cement News