TransNamib to cut down staff complement

24 Mar 2017 14:20pm
By Etuna Shikalepo
WINDHOEK, 24 MAR (NAMPA) – About 400 TransNamib employees will be affected when the company downsizes its operations and subsequently staff complement.
TransNamib Board Chairperson, Paul Smit told Nampa on Friday they have to streamline the company to be successful.
“It is not a retrenchment but we have to downsize the company through early retirement or voluntary retirement,” he said.
The company will offer packages to employees who want to go on early retirement or voluntary redundancy.
Smit said they are planning to start the downsizing process as of 01 April 2017.
He noted that the company will close the road transport and parcel departments and focus only on rail transport, which contributes 80 per cent to the company’s revenue.
He said it is a long process that started with discussions with Government last April, and they have already submitted their plan but are yet to involve the trade unions.
Smit noted that at the moment, the company is making a loss of about N.dollars 1 million a day, adding that the longer it delays the process the more the loss to Government will be, because they have to pay dividends to the shareholder.
“We cannot make profit if we have too many people; this is one of the things that we could avoid or bypass but unfortunately, we do not have other options,” Smit said.
The chairperson said many employees are willing to go on early retirement or voluntary redundancy.
Smit could neither reveal the cost involved in the exercise, nor where the funds will come from to pay the employees.
“We are trying to avoid retrenchment, but my feeling is that at the end there might be some people who will be retrenched against their will; thus we are trying to make it voluntary now,” he said.
TransNamib is mandated to provide transport services within and outside the borders of Namibia by means of transportation of passengers and goods by railway and road as approved by Cabinet.
The company provides rail transport to, amongst others, mines for commodities such uranium, copper, coal, zinc, machinery for mining and other export mining products.