|
The Ministry of Trade and Industry (MoTI) ordered
the Privatisation and Public Enterprises Supervisory
Agency (PPESA) to immediately implement the
government’s decision to layoff and grant premature
pensions to 2,655 workers from the seven state
enterprises it oversees.
A letter Tadese Haile, state minister of MoTI, wrote
to the Agency, on June 29, 2007, states that the
Prime Minister’s Office has instructed the Social
Security Agency (SSA) to implement the decision
immediately, though PPESA should facilitate the
conditions for pensions to be delivered.
This massive layoff is the largest since 1994, a
year that saw a massive downsizing of public
agencies when privatisation was in full swing.
However, unlike the current arrangement, workers at
that time were denied pension rights, except those
who qualified for minimum pension payment ages.
The workers that will be laid-off now have served
their respective enterprises for 20 years or more
and are 45 years of age or above.
Out of the total over 110 state enterprises under
PPESA, the downsizing was aimed at cutting
workforces at 10 of the enterprises that are
operating in the red for the past five years after
repetitive attempts to privatise or enter into joint
ventures with private investors failed.
Though PPESA proposed to MoTI to layoff 4,200
workers from 10 enterprises after the Ministry
ordered downsizing, the Council of Ministers, which
assessed the case in its 33rd regular meeting on
April 27, 2007, that was sent to it by the Prime
Minister’s Office, gave the green light to the
reduction of only 2,655 workers. It was MoTI which
tabled the request to the Prime Minister’s Office.
According to a letter Berhanu Adelo, head of the PM
Office and minister of Cabinet Affairs, wrote to the
SSA, the largest downsizing of 979 workers would be
made in the Dire Dawa Textile Factory. However, the
Cabinet rejected PPESA’s request to cut 1,156
workers from Akaki Textile Factory. Other requests
made by PPESA three months ago to MoTI and delivered
to the Cabinet but which were not approved are 462
cuts from Bahir Dar Textile Factory and 157 cuts
from Ethio-Japan Nilon Factory.
The Cabinet, nevertheless, has backed the reduction
of 116 workers from Addis Abeba Tannery, 179 workers
from Ethio Tannery, 322 workers from Semen Omo State
farm, 449 workers from Walia Long Distance Buses and
184 from Tewahido Tibeb.
Based on the order made by MoTI, the Agency has
written a letter with a list of names of workers
that will be laid-off to the respective enterprises,
sources disclosed. The letter in turn orders the
enterprises to send salaries scales and documents
required for pension payments to the workers to aide
SSA.
|
