Business in Cameroon | January 15, 2018, Cameroon Shipyard and Industrial Engineering Ltd has decided to terminate the employment contract of 270 employees for financial reasons.
According to an information note published On January 11, 2018, by Forgwei Alfred Mbeng, the firm’s managing director, the mass firing is in accordance with government’s prescription of a recovery plan for the company. Cameroon Shipyard and Industrial Engineering Ltd has been facing recurring social discontent. Indeed, from CFA40 billion the company’s turnover plummeted to about CFA3 billion currently.
The managing director explained that on July 19, 2016, following the prescription, the executive board had elaborated a recovery plan which was to be implemented between 2015 and 2017. The said plan includes a social component which is aimed at reducing the number of employees for an adequacy with the normal level of activities of shipyards.
Forgwei Alfred Mbeng also explained that the employees concerned would be notified individually of their termination and of their labor rights. This is under the memorandum of understanding signed by the management and staff representatives on November 28, 2016. “The procedures (signing of the conciliation reports) which will lead to the rights settlement will be finalized at the regional labor directorate in the coastal region from January 18, 2017”, the MD explained.
In the long term, out of the 750 employees currently working at the company, at least 473 employees will be dismissed.