5th July, 2010
De-United Foods has explained that the recent redundancy exercise carried out by the company was purely a pragmatic business decision and not targeted at any individual or group.
According to the company’s General Manager, HR & External Affair, Kola Hassan, the exercise was carried out in accordance with the Nigerian Labour Laws and the procedural agreement in the Food, Beverage & Tobacco Industry.
Hassan said in accordance with the laws, meetings were held with the National Union of Food, Beverages & Tobacco Employees (NUFBTE) and the Food, Beverages & Tobacco Senior Staff Association (FOBTOB) as well as the workers representatives of both the senior and junior staff on why the company had to embark on redundancy and the extent of the redundancy exercise which is less than 7% of the total workforce.
He said at the end of these meetings, an agreement was reached and a communiqué was issued which was signed by both parties.
He explained that the exercise was necessary and that the management strictly observed the provision of section 20 of the Labour Act CAP 198 LFN.
Hassan also stressed that compensation package beyond what the law stipulates is given to the affected staff. In addition to the redundancy benefits and gratuity, the company agreed to enhance the severance package of affected staff by making ex-gratia and goodwill payment.
He said all affected staff would also be allowed to enjoy free medical services for self, spouse and two children for three months from the effective date of redundancy. Hassan added that all outstanding leave and allowances have been commuted to cash, prorated and paid.
He said though it is regrettable to part with the affected members of staff, the company can only wish them success in their future endeavours.
