Stella Dimoko Korkus.com: Dangote sacks 36 expatriates, 12 Nigerians Over Recession

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Monday, 24 October 2016

Dangote sacks 36 expatriates, 12 Nigerians Over Recession

The current recession rocking the Nigerian economy has hit one of the biggest employers of labour in the country outside of the government as the Dangote Group, belonging to Africa’s richest man, Aliko Dangote, has fired 48 members of staff.



Punch gathered that those sacked were made up of 36 expatriate and 12 Nigerian workers from the group’s headquarters and one of the subsidiaries, Dangote Cement Plc.


Though no official of the group was willing to speak on the matter on Sunday, one of our correspondents gathered from highly placed sources that the decision to sack the workers was not unconnected with the current high cost of running business in the country occasioned by the unavailability of foreign exchange and the unprecedented hike in the naira to dollar exchange rate.

It was further gathered that the huge amounts in foreign currencies being paid to the expatriate workers had become a burden on Dangote due to the steady depreciation in the value of the naira and the difficulties of raising enough dollars.

Consequently, the industrialist, according to sources, has decided to replace the expatriates with Nigerians, who have acquired the requisite experience on the job, as paying them in naira will be less problematic.


For the affected Nigerians, it was gathered that most of them had disciplinary issues, which made it easy for the group to do away with their services.
When contacted on Sunday, the Group Head, Corporate Communications, Dangote Group, Tony Chiejina, said he could not speak on the development.
However, in a letter signed by the President/Chief Executive Officer, Dangote Group, Aliko Dangote, dated Thursday, October 20, 2016,the firm stated that it was constrained to take the “tough” decision as economic factors had affected the cost of production.


The letter, which was titled: ‘Recent Retirement Exercise’, however, appreciated those affected for their contributions to the growth of the group.
The letter read in part, “This year has been a very challenging year for us as a business. The unavailability of foreign exchange coupled with an unprecedented hike in the exchange rate has resulted in increased costs across the organisation.

“This called for a proper review and adjustment of our costs across board to ensure efficiency and effectiveness in the deployment of our factors of production in a bid to eliminate redundancies that we know exist, which resulted in some tough decisions, which means losing staff, including some of our colleagues.

“On Friday, October 14, 2016, we began the process of staff cutbacks as it is imperative to review our human capital deployment for the required cutbacks that would ensure efficiency and eliminate redundancies in the allocation of human resources.

“This first phase of this exercise involved the cutback of 36 expatriate staff across the Dangote Cement Plc and Dangote Industries Limited, and 12 local staff members in Dangote Industries Limited.”
As an organisation with international operations, the group promised that it would continue to review and restructure its human capital deployment to ensure “optimal allocation of skill sets and size of the workforce each function requires.”

The group urged the workers to shun lateness, improper dressing and other unsavoury behaviours in the workplace.
Bloomberg had in its latest ‘Billionaire Index’ reported that Dangote had lost $5.4bn of his fortune this year due to the fall in the value of the naira and the decision of the Central Bank of Nigeria to ration dollars to stem huge capital outflows in the wake of Nigeria’s worst economic crisis.

Dangote had recently urged the Federal Government to sell off the Nigerian Liquefied Natural Gas Company and other dormant but huge capital-generating enterprises and reinvest the proceeds in the economy to bring the country out of the current economic recession before the end of the fourth quarter.
Dansa Foods Nigeria Limited, which claims to be a member of the Dangote Group, has reportedly been unable to pay its workers for the past six months.
The company is being run by Alhaji Sani Dangote, a brother of Aliko, who is the Executive Chairman, with Aliko’s shares embedded in the firm.

Multiple sources in the Dangote Group claimed that Dansa Foods was not part of the group but was an independent company owned and run by Aliko’s brother.
However, in a statement announcing its participation at the just concluded Lagos International Trade Fair, the group listed some of its subsidiaries as Dangote Sugar Refinery, Dangote Agrosacks, NASCON Allied Industries Plc (Dangote Salt), Dangote Rice Limited, Dangote Cement Plc and Dansa Foods Limited.

It was reported that the company, which produces Dansa Juice and other goods, had laid off more than half of the workforce following dwindling sales and high cost of production caused by high exchange rate of the naira.
It was gathered that the company had suspended the production of Dansa Juice and other products, and was only producing Mowa Bottle Water.

As a result, the workers have reportedly embarked on a strike to press home their demand.



37 comments:

lolah said...

Recession.

Chysugar said...

Na wa. Is it this bad now? Self employment is d best. Wat will the sacked workers do now?

Miz Cindy said...

buhari it won't be well with you, from Dangote worker to unemployed, choi, this one pain sha..


Allergic to bullshite*

Senator said...

Because he could no longer pay the expatriates is Dollars cus of the bla bla bla, Nigerians are now worthy of Undertaking the job.

What happens if Naira rises tomao all of a sudden like ijebu Garri, I hope those guys won't be fired or replaced.

AppleofGodseyeoriginal said...

Hmmmm,it is well oo,I can only imagine how those ones re feeling now

OluVee said...

This is the change they voted for. Anyone who still thinks buhari is the best that ever happened,needs a reset in his/her brain. With the way things are going,I hope Nigeria doesn't get doomed.

Chidinma Grace said...

That Dansa juice dt I hate. Even his spaghetti is a flop

Obi's Jewel said...

Na wa ooooo... Even dangote too????? Abeg which company is safe?

Cynthia Iyede said...

Lord have mercy!

OlaGold (add up 58BF8F56 for 18-24k raw gold dust and bar) said...

O ga o.

Anonymous said...

When next u hear sai Buhari foolish goats you run, if it were in the time of Gej,Ngozi and co won't sit down and watch things happen this way, we are in a very hot soup.i said it,I knew things were going to be like this .

Anonymous said...

Oh God we don't need this new government,bring back our corruption.

redbotafly said...

Ds is really bad.
God help us.

Anonymous said...

hmm recession things i wonder when the so called economic recession would probably end its rili affecting everyone out there may God help us





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charitybino said...

It's high time this recession ended already.
Nigerians have now replaced the expatriates.

nzube izuu said...

Na waooo!Nsogbu dikwa!

Lilly simple said...

Ok
@ list the recession no affect only poor man

Anonymous said...

If everyone becomes self employed, who buys from the other?

If everyone starts becoming self employed, then self employed will not have those to sell too and will suffer loses

I am the queen and the boss of this blog said...

Exactly!...

I am the queen and the boss of this blog said...

You forgot to add his noddles...

I am the queen and the boss of this blog said...

Sisi Eko,Nwunye General,Yemi 0up and Jaymoore still think he is the best!!...

Asa nwa said...

Hope he sacked his drivers too. Those idiots wrecking havoc on Nigerian roads as if it's their father's

Justina Michael said...

The recession is just biting harder. Imagine the price of palm oil. Baba God we dey ur hand.

Lady C said...

So recession don reach dangote side.

Intelligentia princess loves chikito and Linda Eze. said...

Ubangiji atemeka mutane naijeria. Mun chiga one chance fa..

Anonymous said...

Dangote, your sugar too cost, the average man cannot drink tea with sugar again. As a world billionaire and philantropist that you is nau, please reduce your sugar price oooooo

IJAY said...

God,please intervene in this out situation, is not getting any better ohhhhh

peace maker said...

Sai Changi Sai Buhari

peace maker said...

The Chicken has finally come home to roost.And the C in C is confused

Loveme Jeje said...

hahaha, this recession is not ending ooo. everywhere is sack, sack, sack.

And in the church, it was said it will be worst come next year. Buhari no get power to stop this recession. Abeg Nigerians, make una over tight una belts ooo.

It is getting worst by the day

Ene N said...

Wetin Expatriates still dey find for Nigeria. If I had a country to go to,I would have gone since.The rest should better resign and go back home, even if it's India. What?

popeyes said...

Certain staff in the Procurement dept were sacked due to some corrupt practices ie Striking deals with suppliers as against company policies. This 'source' is just summing up what he doesn't know.

Anonymous said...

People should be prating oo there is hunger in the land i went to buy a creat of eggs last nite at N1200, Dangote sugar self is 120. Come to Apapa it is almost a ghost town alots of companies has closed down with sack workers.

God take care of your children.

General Zod said...

Let's worry about today. Tomorrow will take care of itself.

General Zod said...

But who will drive? Business must go on sadly.They need to monitor them properly because they are very reckless.

Anonymous said...

Abeg he should go and sit down, wicked Hausa man, he has been owing contractors that supplied diesel to him three years ago, since then. I know one who lost all his money, he's trekking now, can't pay rent

Annabella said...

At this point, buhari shld just resign honorably. Go bubu Go...can't deal mehn. Imagine a president dt doesn't know 45 out 50 of his cabinet members. Stella wen is ur rant post coming up. Mtscheeewww

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