MONROVIA, Montserrado – The Ministry of Labor acknowledged on Tuesday, its awareness of the ongoing mass redundancy at Firestone Liberia Incorporated.
The company had earlier announced that it is reducing its workforce by 500 workers, which it says constitutes at least seven percent of all employees.
Joseph Kortu Nyenabo, the spokesperson for the Ministry of Labor, said in an interview that the ministry had held talks with the workers union and Firestone’s management.
Nyenabo said there was nothing the government could do to stop the company’s action. “The law allows companies to reduce workforce if there are genuine reasons including financial crises,” he said.
However, he said the government would ensure that workers who would be laid off would receive fair compensation.
The president of the Firestone Agricultural Workers Union of Liberia, Harris Kerkula, has confirmed the discussions.
He said the company has offered twenty-five months’ pay to employees who have worked at the company for ten years or greater, in addition to one month’s pay for every year of service.
For employees who have worked for less than ten years, Kerkula said the company would pay the equivalent of one and a half month’s salary for each year of service.
All workers being laid off would also receive the cash equivalent of their remaining leave.
All affected workers will also be provided with US$75 for each of their registered dependents, according to the agreement reached with the company.
He said workers have already begun receiving letters of separation from the company. He meanwhile encouraged them to be courageous and use their benefits wisely.
However, Nyenabo said he is not aware of a deadlock on the ongoing negotiation between the company and the workers union for a new collective bargaining agreement.
Featured photo by Solidarity Center/Bill E. Diggs