The sustained galloping cost of production driven by forex crisis has started taking tolls on expatriate quotas in several companies including Dangote Group. The development has lead to the sack of 48 expatriates and 12 Nigerians.
In a letter signed by the President/Chief Executive Officer, Dangote Group, Aliko Dangote, dated Thursday, October 20, 2016, the firm made it clear that it is taking the “tough” decision to remain afloat at a time recession is hitting hard on manufacturing concerns.
Coming with the caption: ‘Recent Retirement Exercise’, the group thanked those that were affected for their contributions to the growth of the group and wished them well in their future endevours.
The group President said in the letter that “This year has been a very challenging year for us as a business. The unavailability of foreign exchange coupled with an unprecedented hike in the exchange rate has resulted in increased costs across the organisation.
“This called for a proper review and adjustment of our costs across board to ensure efficiency and effectiveness in the deployment of our factors of production in a bid to eliminate redundancies that we know exist, which resulted in some tough decisions, which means losing staff, including some of our colleagues.
“On Friday, October 14, 2016, we began the process of staff cutbacks as it is imperative to review our human capital deployment for the required cutbacks that would ensure efficiency and eliminate redundancies in the allocation of human resources.
“This first phase of this exercise involved the cutback of 36 expatriate staff across the Dangote Cement Plc and Dangote Industries Limited, and 12 local staff members in Dangote Industries Limited.”
“As an organisation with international operations, the group promised that it would continue to review and restructure its human capital deployment to ensure “optimal allocation of skill sets and size of the workforce each function requires.
Besides, the letter touched on the need for surviving workers to shun lateness, improper dressing and other unsavoury behaviours in the workplace.
It would be recalled that Bloomberg had in its latest ‘Billionaire Index’ reported that Dangote had lost $5.4bn of his fortune this year due to the fall in the value of the naira and the decision of the Central Bank of Nigeria to ration dollars to stem huge capital outflows in the wake of Nigeria’s worst economic crisis.
It was gathered that the company had suspended the production of Dansa Juice and other products, and was only producing Mowa Bottle Water. Besides, it currently owes up to six months’ salary.
The main factory of Dansa Foods is located in Abule-Oshun Waterside, the area with the worst road in Oriade Local Development Area, exactly opposite Lagos International Trade fair complex. Findings in the locality showed lull in activities as many of the staff loiter more on the streets than staying in production lines. A staff of the company who pleaded anonymity said “Majority of the workers are young school leavers who may be casual”.
