Meatco and Nafau sign agreement

28 Aug 2013 11:50
WINDHOEK, 28 AUG (NAMPA) - Meatco has agreed to pay out one month’s salary in lieu of the corporation’s realignment notice to temporary employees, in addition to a pro-rata bonus, leave days and severance pay.
The Meat Corporation of Namibia (Meatco) and Namibia Food and Allied Workers’ Union (Nafau) signed a memorandum of agreement on the non-renewal of 327 temporary employees’ fixed-term contracts last Friday, Meatco’s Manager of Corporate Communication and Marketing, Mario Poolman said in a media statement issued on Wednesday.
“Nafau has a standing recognition agreement with Meatco and is recognised by the corporation as the sole bargaining agent for bargaining unit employees. In line with the standard employment contracts, Nafau and Meatco agreed that the corporation is a seasonal business dealing with livestock and perishable products. They also agreed on the fact that employment agreements entered into with the concerned staff are only for a particular season of that year and that subsequently, contracts came to a natural end on 31 August 2013,” he noted. Meatco’s Chief Executive Officer (CEO), Advocate Vekuii Rukoro announced late July this year that the usual off-season period, which commences at the end of September this year, will not see enough cattle delivered to sustain the operations at its Windhoek and Okahandja facilities this year.
He stated that the company has to review its human resources, as it is simply not viable to retain a staff complement of 1 400 people with such low cattle numbers and reduced operations. This, he said, would result in the non-renewal of all fixed-term contracts (temporary/seasonal employees), which were set to come to an end in August 2013.
According to Poolman, the parties agreed that Meatco will pay the affected employees one month’s salary (August) in lieu of notice, a pro-rata bonus and leave accrued for the year. In addition, two weeks’ severance pay for each year of service will be paid for employees who worked for the company for a minimum of 12 months. A token of appreciation of N.dollars 1 500 for all those with four and more years of service and N.dollars 1 000 for those employees with less than four years of service will also be paid. Meatco will also issue all affected employees with employment certificates.
Additionally, Meatco will consider affected employees for future positions that may become vacant in the following six months ending 31 January 2014. They will also be considered for the Meatco Angel Fund Assistance through SME Compete, according to Poolman.
The agreement is applicable to all temporary employees at the Windhoek and Okahandja abattoirs.