Displaying items by tag: Dispute

Kenya: It was reported on 25 January 2012 that operations at the East African Portland Cement Company (EAPCC) were likely to resume on 26 January 2012 after the parties involved in the dispute 'ironed out their differences.' Some local reports are suggesting that many workers will stay away from the plant if it opens over an ongoing dispute with the management. EAPCC Chairman Mark ole Karbolo said, "A solution has been found," and that the board was meeting all stakeholders to agree on a return-to-work formula.

"It is the intention of the board that the company resumes operations immediately," said Karbolo. "The underlying issues that were raised will be addressed following the right procedure and also using the board processes."

The cement plant was shut down on 16 January 2012 when its staff blocked Managing Director Kephar Tande and board members who had just been reinstated by the court at the premises. The workers were demanding that a new board be constituted before they can agree to go back to work. They cited their lack of confidence in the board. One man was shot in the dispute.

The closure has prevented the normal production of around 30,000t of cement and an associated loss of about US$3.5m has been incurred. Despite the millions of dollars in losses, Karbolo is confident that the firm would be able to recoup its losses in coming days."It is possible. We will maximise our operations and our efficiencies and we should be able to recover," he emphasised.

Even if it is possible to safely return to normal operation in the coming days the concerns that have been brought to the fore by the infighting surrounding the shareholding structure will have to be addressed.

It remains unclear whether the 27% stake held by the National Social Security Fund (NSSF) should be treated as belonging to the government or if it should be considered as a separate entity. While the board members have maintained that the two main owners, namely the government and the NSSF, should be looked at as different shareholders, Industrialisation Permanent Secretary Karanja Kibicho, maintained that the government and the NSSF are one entity.

"As far as the government is concerned, its shareholding at EAPCC remains just like it was 10 years ago. Our shareholding in that firm is 52.3%," Kibicho maintained. Lafarge owns 41.7% and the public owns 6% of EAPCC.

Kenya: A court has ordered the government to re-open the East Africa Portland Cement Co plant and provide security to ensure operations at the site. Justice Mohamed Warsame directed Police Commissioner Mathew Iteere, Rift Valley police boss and his Eastern Province counterpart to ensure adequate security.

The judge said the interest of the company must come first by safeguarding the interests of the public and shareholders. The judge warned that any politicians that interfered in the affairs of the company would be cited for contempt of court. He said that if the directors were not ready to reopen the company, he would 'fire' them and appoint an interim board.

"We must look at the bigger picture and how we can move this company forward and save it from being run down. The court cannot let it go on," he said.

The judge dismissed allegations that politicians incited workers and warned that any employee who failed to report to work should be sacked for absconding duty. He said that the ethnic direction the company was taking was wrong adding that, "we cannot address the grievances of the Kamba and Maasai, but the company has to operate."

Kenya: The activism of local Massai groups and environmental NGOs is preventing the National Cement Company from installing its clinker plant south of Nairobi.

Narendra Raval, head of the National Cement Company Ltd (NCC), known as 'Guru', is facing stiff resistance to installing a clinker plant south of Nairobi and operating limestone quarries. His company has acquired land from the local county council to build its second cement plant in the country, but environmental NGOs are opposed to this project. Massai groups are doing likewise, saying in their case, that the land belongs to them. The strongest resistance comes from state-owned Kenya Wildlife Services (KWS), which argues that the land should remain a migration corridor for wildlife between the national parks of Amboseli and Nairobi.

A subsidiary of the Devki Group (which is also the parent of DevkiSteel Mills), NCC argues its case by promising to reserve 200 new jobs for Massai youth.