Shiimi blocks RCC worker dismissals
Board sticks to its guns
In its first two years under judicial management, the company has gobbled up nearly N$85 million from government's contingency fund to pay salaries.
The Roads Contractor Company (RCC) must stop its plan to terminate employee contracts and continue paying them as per a Cabinet decision, acting minister of public enterprises Iipumbu Shiimi ordered.
In 2017, Cabinet placed the company under judicial management, a court-supervised rescue arrangement, which was meant to turn it into a possibly new but efficient entity. Five years and millions of dollars later, the status quo that led to the drastic decision remains.
In its first two years under judicial management, RCC has gobbled up nearly N$85 million from government's contingency fund to pay salaries.
Shiimi’s instruction to RCC board chairperson Hileni Kaifanua comes after the company gave notice to at least four employees - accused of not working from the office - that their contracts will be terminated.
RCC, which has around 160 workers and a monthly salary bill of about N$5.4 million, has reduced its operations significantly over the years due to colossal debts, which led the company to a point of no return - bankruptcy.
On hold
RCC has year-on-year, since its establishment in 2000, posted financial losses. It was against this background that Cabinet placed the company under judicial management and ordered that salaries be paid from treasury.
Namibian Sun has been informed that Shiimi wrote to the board last week informing them to stop any terminations after RCC workers approached him complaining that their contracts were being terminated without proper consultations.
“I direct the board to put on hold all the termination notices that were issued and are due before end of July and beyond,” he wrote.
“This is to allow the board to first brief my office, discuss the future of RCC and present the integrated strategic business and restructuring plan to our office for discussion and approval,” the letter, dated 19 July, further read.
They don’t want to work
Kaifanua yesterday defended the company’s position, saying “some people want to get paid without working”.
She said only four employees’ contracts were terminated.
“The four contracts are of those people who do not come to work. We know the situation of people staying at home and getting paid while others are at the office. Some never showed up to work until they were told to return,” Kaifanua said during a telephonic interview.
She added that the reasons for the termination of the contracts are stated in the termination letters and that everything was done above-board.
RCC recently moved from its headquarters to new rented premises, which are much smaller in size. This situation is apparently being used by some employees to stay at home.
Kaifanua confirmed this, saying: “Some people claim there is not enough space at the new offices and some still want their own offices like in the past. But we must [make] do with what we have, provided it does not affect anyone health-wise.”
She also added that some office-based workers want to compare themselves to technical staff members.
“We must separate office workers from technical workers. Our technical workers cannot be accommodated at all our current projects, hence some stay at home, but the office workers must come in,” she said.
She added that she attempted to discuss the matter with Shiimi, but “we did not conclude the talks”.
“He told us that he will assign someone so that we can engage on the matter,” she said.
In 2017, Cabinet placed the company under judicial management, a court-supervised rescue arrangement, which was meant to turn it into a possibly new but efficient entity. Five years and millions of dollars later, the status quo that led to the drastic decision remains.
In its first two years under judicial management, RCC has gobbled up nearly N$85 million from government's contingency fund to pay salaries.
Shiimi’s instruction to RCC board chairperson Hileni Kaifanua comes after the company gave notice to at least four employees - accused of not working from the office - that their contracts will be terminated.
RCC, which has around 160 workers and a monthly salary bill of about N$5.4 million, has reduced its operations significantly over the years due to colossal debts, which led the company to a point of no return - bankruptcy.
On hold
RCC has year-on-year, since its establishment in 2000, posted financial losses. It was against this background that Cabinet placed the company under judicial management and ordered that salaries be paid from treasury.
Namibian Sun has been informed that Shiimi wrote to the board last week informing them to stop any terminations after RCC workers approached him complaining that their contracts were being terminated without proper consultations.
“I direct the board to put on hold all the termination notices that were issued and are due before end of July and beyond,” he wrote.
“This is to allow the board to first brief my office, discuss the future of RCC and present the integrated strategic business and restructuring plan to our office for discussion and approval,” the letter, dated 19 July, further read.
They don’t want to work
Kaifanua yesterday defended the company’s position, saying “some people want to get paid without working”.
She said only four employees’ contracts were terminated.
“The four contracts are of those people who do not come to work. We know the situation of people staying at home and getting paid while others are at the office. Some never showed up to work until they were told to return,” Kaifanua said during a telephonic interview.
She added that the reasons for the termination of the contracts are stated in the termination letters and that everything was done above-board.
RCC recently moved from its headquarters to new rented premises, which are much smaller in size. This situation is apparently being used by some employees to stay at home.
Kaifanua confirmed this, saying: “Some people claim there is not enough space at the new offices and some still want their own offices like in the past. But we must [make] do with what we have, provided it does not affect anyone health-wise.”
She also added that some office-based workers want to compare themselves to technical staff members.
“We must separate office workers from technical workers. Our technical workers cannot be accommodated at all our current projects, hence some stay at home, but the office workers must come in,” she said.
She added that she attempted to discuss the matter with Shiimi, but “we did not conclude the talks”.
“He told us that he will assign someone so that we can engage on the matter,” she said.
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