Chinese-managed Oshakati abattoir retrenches 42 employees

OSHAKATI’S Eloolo Abattoir, jointly managed by local partner KIAT Investment Holdings and Chinese firm Ningbo Agriculture Investment Group, is retrenching 42 employees due to a lack of production.

This follows less than a year after KIAT and Ningbo started managing the agriculture ministry-owned entity. Meatco had formerly been leasing the abattoir.

According to a retrenchment letter of one of the employees, which The Namibian has seen, the action is effective from 9 September 2021. It also mentions that 42 employees have been laid off “due to the recent restructuring and economic downturn”.

“I regret to inform you that you are being retrenched from your position effective 09/09/2021. This lay-off should be considered permanent,” the abattoir’s plan manager, Deon Visser, wrote.

Visser said employees would receive N$3 500 per month until the end of next month.

“The following properties must be returned by 15 September 2021: office keys, electronics, i.e personal computers and laptops,” he wrote.

According to two employees, who spoke on condition of anonymity, Visser told them the abattoir is retrenching, because it needs to cut costs.

Oshakati Eloolo Abattoir reopened its doors 11 months ago.

KIAT Investment Holding director Cleopas Nangolo on Tuesday said the abattoir is planning to retrench employees, but the decision would be taken at a board meeting.

“It has not been finalised yet. There are people who like to communicate things even when the final decision has not been taken. The board has to sit and see if the correct procedures are being followed, and whether they are discriminatory,” he said.

Nangolo said the employees are not retrenched, but have been told to stay at home because there is currently no production.

He said municipal services such as water and electricity have also been suspended.

Asked whether it was the board’s decision to retrench workers, Visser said: “I don’t have an answer for you. Ask Mr Nangolo, because he has already given you an answer.”

At the opening of the abattoir last year, minister of agriculture, water and land reform Calle Schlettwein said the Oshakati Eloolo Abattoir forms part of the beef value-chain development project in the northern communal areas of the country.

This involves the upgrading and construction of abattoirs and meat processing facilities across the northern communal areas.

“The reopening of this abattoir will support the government policies and strategies to facilitate market access of livestock and livestock products, as well as the development of the beef value chain in the communal areas of our country,” Schlettwein said.

The opening of the abattoir was also set to yield multiple benefits for locals.

Efforts to get hold of Schlettwein before going to print proved futile yesterday.