FMD threatens nearly 600 jobs at six companies

Six Namibian employers have notified the labour commissioner’s office of plans to retrench 589 workers because of the foot-and-mouth disease (FMD) outbreak.

The labour ministry confirmed that it had received six notices of intended retrenchment but stressed that the affected employees had not necessarily lost their jobs.

Ministry spokesperson Maria Hedimbi explained that under the Labour Act, employers intending to retrench workers must notify the labour commissioner at least four weeks before the proposed dismissals.

“The ministry acknowledges the challenges that businesses may face as a result of the outbreak," she said in a statement issued yesterday.

"While the law recognises various grounds for retrenchment, including economic reasons that may necessitate a reduction in business operations, preserving jobs wherever reasonably possible remains important for the livelihoods of workers, the sustainability of businesses, and the broader Namibian economy,” Hedimbi said.

She reminded employers that retrenchment procedures must comply with labour legislation, including notification and consultation requirements.

“Employers are expected to comply with the prescribed notification requirements and relevant consultation procedures, ensuring that meaningful engagement takes place and that reasonable alternatives to job losses are properly explored,” she said.

Billions at stake

The retrenchment notices come as the livestock industry faces severe financial losses from restrictions imposed to contain the outbreak.

According to estimates by the Namibia Agricultural Union (NAU), a six-month disruption could result in N$2.4 billion in cash losses across the livestock value chain, equivalent to approximately N$13 million a day, as previously reported by Namibian Sun.

The projected losses extend beyond livestock producers to businesses that depend on animal movements, auctions, slaughtering and exports.

Input suppliers, transport operators, auctioneers and abattoirs rely on livestock trading to generate revenue, pay employees and meet financial obligations.

Agricultural input suppliers generate an estimated annual turnover exceeding N$6 billion, while various livestock marketing channels, including live animal exports, account for approximately N$9.15 billion annually.

According to the NAU, cattle and small-stock slaughtering generates an estimated N$3.7 billion in annual producer value, with another N$914 million added through slaughtering operations.

Livestock auctions facilitate approximately N$2.69 billion in annual sales and generate an estimated N$162 million in commission income.

The union estimates that agriculture supports about 52 000 jobs south of the veterinary cordon fence, with the incomes potentially sustaining another 200 000 dependents, based on four dependents per worker.

Prolonged movement restrictions could therefore affect not only farmers but also thousands of households dependent on agricultural wages and related businesses.

Meatco seeks N$85 million

The financial pressure has already reached state-owned meat processor Meatco, which last month requested N$85 million from its shareholder, government, to meet its financial obligations.

The company also proposed temporarily reducing employees' salaries to two-thirds of their current pay for three months as part of efforts to contain costs during the outbreak.

The measures reflect the difficulties facing businesses whose operations depend on a steady supply of livestock and access to export markets.

The outbreak was confirmed in September on a commercial farm in the Karasburg State Veterinary District of the ||Kharas region, within Namibia's internationally recognised FMD-free zone.

Following confirmation, the World Organisation for Animal Health (WOAH) suspended Namibia's recognised FMD-free status, disrupting livestock and meat exports to important markets, including South Africa, the European Union, China and the United States.

Movement restrictions and export disruptions have placed additional pressure on cash flow, livestock marketing, breeding programmes and businesses throughout the agricultural value chain.

Government estimates that approximately N$190.2 million will be required to contain the outbreak, including about N$47 million for constructing 290 kilometres of disease-control fencing between Ariamsvlei, Karasburg and Ai-Ais.

Industry organisations have also mobilised resources to support the response.

The FMD Support Fund has secured more than N$1.5 million worth of biosecurity products, surveillance kits and field equipment for veterinary teams working in affected areas.