Government owned East African Portland Cement company last week issued a one month notice termination of contract for its employees in managerial positions. Managing Director Stephen Nthei told the trading room that this was in line with the restructuring plan the company has been undergoing.
Last month, EAPCC renewed contracts for all its staff on a contractual basis, this saw some of the employees get a 50% pay cut against the permanent employment status. The company however said they will retain the junior staff for a period of time before terminating their contracts and hiring new staff or hiring them on newer contractual terms.
The company has been faced with financial woes in recent times and this has now seen the firm propose to sell off its 2,000 acre pieces of land.
EAPCC has been undertaking a restructuring plan which included input of cost cutting measures including salaries and other operating costs which was taking almost 85% of the company’s revenues. The company is also looking at refurbishing their current dilapidated plant. This will see the firm put up a fully functional integrated cement milling line at a tune of Sh28 billion