Some staff will be redeployed in new companies, writes James Hall
A SIZEABLE number of workers will be laid off this year by Mozambique's government-owned Ports and Railways company (CFM). CFM-Centro, the transport company's central division headquartered in Beira, will retrench 1 000 workers by next month, with 6 000 workers to be cut by December.
The retrenchment is part of a 10 year programme of rationalising the work force that factors in an overall effort to make the company profitable. The company is cutting jobs while overhauling aging infrastructure, and striving to improve freight haulage service within the country.
The work force is being pruned partly by not replacing employees who this year will reach retirement age of 60 for men, 55 for women. The blow to workers is also being softened by shifting personnel to new companies opened by CFM. Two construction companies are planned, though they are as yet unnamed. The new firms would operate in alliance with private sector partners.
CFM will also provide capitalisation for micro-projects run by retrenched workers who form agricultural cooperatives and other small-scale schemes to generate income. Some of these micro-businesses may supply CFM with agricultural goods and perhaps services on a contractual basis.
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