RCC workers' agony
Close to 400 workers employed by the government-owned Roads Contractor Company (RCC) could lose their jobs if cabinet approves a decision not to grant the beleaguered company a bailout.
The fate of the RCC lies in the hands of the cabinet committee on treasury, which according to media reports is also reviewing the financial status of a number of problematic state-owned enterprises.
The RCC has continued its loss-making trajectory over the last couple of years and its board has requested N$300 million this year in order continue operating. However, a number of senior politicians are not entertaining any idea to rescue the company with a bailout and want it closed. In recent interviews, finance minister Calle Schlettwein has been as quoted saying that government does not have the money to throw a lifeline to the troubled RCC. The painful process of cutting jobs is looming large at the RCC, which illustrates the extent of the crisis it finds itself in. And given the serious governance failures seen at parastatals, including the RCC, it is understandable why government is taking a tough stance on the issue.
However, it is unfortunate that the workers now have to pay such a heavy price for the mismanagement of the company. There is a very sombre mood among employees who have not been paid for about two months after they were told by treasury in no uncertain terms that there is no money for salaries.
It is very sad that workers have to endure this ordeal, mainly because of a leadership deficit that has been allowed to play itself out over the years.
Owing workers unjustifiably and due to no fault of their own is unfair and families should be spared this ordeal. This is a national embarrassment, which also demonstrates that the total dependence of many of the parastatals on central government allocations, has and never will be, a viable way out.
Moreover the plan to kill off 400 jobs in a country which is already battling high levels of unemployment should be guided by long-term plans to overhaul how all these state-owned entities are managed.
The fate of the RCC lies in the hands of the cabinet committee on treasury, which according to media reports is also reviewing the financial status of a number of problematic state-owned enterprises.
The RCC has continued its loss-making trajectory over the last couple of years and its board has requested N$300 million this year in order continue operating. However, a number of senior politicians are not entertaining any idea to rescue the company with a bailout and want it closed. In recent interviews, finance minister Calle Schlettwein has been as quoted saying that government does not have the money to throw a lifeline to the troubled RCC. The painful process of cutting jobs is looming large at the RCC, which illustrates the extent of the crisis it finds itself in. And given the serious governance failures seen at parastatals, including the RCC, it is understandable why government is taking a tough stance on the issue.
However, it is unfortunate that the workers now have to pay such a heavy price for the mismanagement of the company. There is a very sombre mood among employees who have not been paid for about two months after they were told by treasury in no uncertain terms that there is no money for salaries.
It is very sad that workers have to endure this ordeal, mainly because of a leadership deficit that has been allowed to play itself out over the years.
Owing workers unjustifiably and due to no fault of their own is unfair and families should be spared this ordeal. This is a national embarrassment, which also demonstrates that the total dependence of many of the parastatals on central government allocations, has and never will be, a viable way out.
Moreover the plan to kill off 400 jobs in a country which is already battling high levels of unemployment should be guided by long-term plans to overhaul how all these state-owned entities are managed.
Comments
Namibian Sun
No comments have been left on this article