O&L Group aims for sustainable restructuring

THE chairman of the Ohlthaver & List Group of Companies (O&L Group) has dispelled fears that one of the oldest business empires in the country is crumbling.

Recently the group had been the focus of trade union activity following the streamlining of several of its business units and the sale of some. Seven Thieme, the chairman of the group, told The Namibian in an exclusive interview that he also feared at one point that the group was going down.”It is for that reason that we embarked on this crucial plan to restructure our business – and so far it looks promising.If we continue as we do, the O&L Group will be a company that will be sustainably supported by state-of-the-art business systems and processes together with a staff complement this country can be proud of.”The group has been at the centre of union allegations that it is deliberately shedding jobs and randomly closing down business units since Thieme’s takeover of the group.However, the chairman in no uncertain terms said that “no business unit has been closed down”.The areas he had been responsible for since 1998 had produced “1 100 jobs in absolute terms”, Thieme pointed out.He said the trend of creating new jobs will be continued with new investments in the group’s retail business.Thieme further revealed that the group will open two more Pick ‘n Pay stores this year, but was reluctant to disclose the location of the new ventures.According to him the two shops would generate at least 60 jobs.”In this way the loss of 30 jobs at Windhoek Schlachterei will already be alleviated.”The announced retrenchment of 30 workers out of a total of 93 at Windhoek Schlachterei last month led to protest by the Namibia Food and Allied Workers Union (Nafau).The union has been adamant in its claim that some 900 jobs had been cut at the O&L Group in recent years, despite Thieme’s claim to the contrary.The chairman admitted that the restructuring plan announced by the group two years ago was intended to shed 300 jobs from a total of 4 100 to 3 800 and to create additional jobs at a sustainable basis.”We are very proud to say that we are close to the 4 100 level again, but this from a sustainable basis.This does not include the jobs created when the Standard Bank Centre was build, all renovations which are done by outside contractors, the new Hangana value-added factory, the current Wernhil refurbishment, etc,” Thieme said.Referring to the closure of Hansa Breweries and the Rietfontein dairy, Thieme said this “was not about closing a business unit but about focusing our production efforts onto one plant, which makes it more cost effective”.Thieme also conceded that some units within the group have not been doing particularly well, such as leisure and accommodation.However, plans are under way to resurrect this part of the group.He said that the Windhoek Lager brand was the mainstay of the group and was “doing extremely well”.Sixty per cent of the total local production of this beer, he revealed, is exported to 26 countries.Next in line to be focused on is the soft-drinks section, which has been on the back burner of the group’s business.”Less focus was put on the soft drinks because we had to focus on our core beer business first to get this in order.Soft drinks will certainly get a larger focus again,” Thieme said.Seven Thieme, the chairman of the group, told The Namibian in an exclusive interview that he also feared at one point that the group was going down.”It is for that reason that we embarked on this crucial plan to restructure our business – and so far it looks promising.If we continue as we do, the O&L Group will be a company that will be sustainably supported by state-of-the-art business systems and processes together with a staff complement this country can be proud of.”The group has been at the centre of union allegations that it is deliberately shedding jobs and randomly closing down business units since Thieme’s takeover of the group.However, the chairman in no uncertain terms said that “no business unit has been closed down”.The areas he had been responsible for since 1998 had produced “1 100 jobs in absolute terms”, Thieme pointed out.He said the trend of creating new jobs will be continued with new investments in the group’s retail business.Thieme further revealed that the group will open two more Pick ‘n Pay stores this year, but was reluctant to disclose the location of the new ventures.According to him the two shops would generate at least 60 jobs.”In this way the loss of 30 jobs at Windhoek Schlachterei will already be alleviated.”The announced retrenchment of 30 workers out of a total of 93 at Windhoek Schlachterei last month led to protest by the Namibia Food and Allied Workers Union (Nafau).The union has been adamant in its claim that some 900 jobs had been cut at the O&L Group in recent years, despite Thieme’s claim to the contrary.The chairman admitted that the restructuring plan announced by the group two years ago was intended to shed 300 jobs from a total of 4 100 to 3 800 and to create additional jobs at a sustainable basis.”We are very proud to say that we are close to the 4 100 level again, but this from a sustainable basis.This does not include the jobs created when the Standard Bank Centre was build, all renovations which are done by outside contractors, the new Hangana value-added factory, the current Wernhil refurbishment, etc,” Thieme said.Referring to the closure of Hansa Breweries and the Rietfontein dairy, Thieme said this “was not about closing a business unit but about focusing our production efforts onto one plant, which makes it more cost effective”.Thieme also conceded that some units within the group have not been doing particularly well, such as leisure and accommodation.However, plans are under way to resurrect this part of the group.He said that the Windhoek Lager brand was the mainstay of the group and was “doing extremely well”.Sixty per cent of the total local production of this beer, he revealed, is exported to 26 countries.Next in line to be focused on is the soft-drinks section, which has been on the back burner of the group’s business.”Less focus was put on the soft drinks because we had to focus on our core beer business first to get this in order.Soft drinks will certainly get a larger focus again,” Thieme said.