Monrovia, March 22 (LINA) – The Government of Liberia has initiated talks with authorities of Firestone Natural Rubber Company following the investor’s recent plan to redundant at least 800 or 13 percent of its workforce, Deputy Information Minister Eugene Fahngon disclosed on Thursday.
In its statement released on Monday, Firestone attributed its plan to « continued and unsustainable losses resulting from high overhead costs associated with the company’s concession agreement with the government of Liberia, low natural rubber production because of the country’s prolonged civil war, and continued low global natural rubber prices. »
However, Firestone Agricultural Workers Union of Liberia (FAWUL), immediately rejected an attempt to lay off employees, and called on the Ministry of Labor to intervene « as quickly as possible. »
FAWUL said even though it had been previously informed by the company, but it was shocked to know that Firestone reached the decision without a mutual consensus on the matter.
The trade union group said it was concerned about job security for its members.
Addressing journalists at the Information Ministry’s regular press briefing on Capitol Hill, deputy minister Fahngon said government was exerting all available means to remedy the situation which has drawn the attention of many, including lawmakers from Margibi County, due to the [high] economic implication it might pose to would-be redundant employees.
The « constructive » meeting on Tuesday in Monrovia, included a conference call with top executives of Firestone based in the United States, during which the company’s management team in Liberia and the government agreed to negotiate until a deal can be reached.
A strategic meeting of parties, including FAWUL, has been slated for early April, as the government urged interest groups to remain calm and law-abiding while efforts are hastened to attain a fruitful outcome.
Notwithstanding, during the news conference, Fahngon quoted Firestone as clarifying that the layoff intends to affect 600 persons and NOT 800 as previously reported.
The Management of Firestone recently informed the government that it has incurred losses that amount to US$20 million annually for the past 10 years, Fahngon said.
