Castel Malawi cuts more jobs: Brewer at risk of closure
Castel Malawi Limited, producers of alcoholic and non-alcoholic beverages, says it is set to cut more jobs in a second phase of retrenchment this month.
Director of Human Resources Naomi Nyirenda says in a memo to all members of staff dated September 30 2019 that all affected employees will be laid off by October 25.
“All payments in respect of retrenchment will be made through the payroll on 25th October, 2019 together with October 2019 salaries,” says the memo in part.
Nyirenda says other payments such as overtimes will be paid as per the company’s payout procedures.
“However, the company will recover all the outstanding debts that each retrenched employee has at the time of exit,” says Nyirenda.
Castel Malawi, which took over from Carlsberg Malawi Brewery, says it shall repatriate, upon request within three months of retrenchment, any employee to their registered homes within Malawi.
It is yet to be known how many employees will be affected by the retrenchment exercise.
Castel Malawi is rated as one of the top 10 taxpayers in the country, contributing to the development of the economy for over 50 years and are also the number one taxpayers of import duties.
The company employs a workforce of 1 284 people with a business network of over 100 000 stakeholders, customers, suppliers, distributors contractors, locally and internationally.
Not surprised with the move. Foreign companies tend to buy local companies and then close them down so that they maximize economies of scale by supplying the local market from foreign production facilities. In this case Malawians will start importing beer from their RSA production plants. That is the price poor nations pay for accepting globalisation and Free Trade Area Agreements.
Well you can’t have it both ways. Business is all about efficiency in the supply chain: from materials, production (fixed and variable costs) to sales and distribution. Lower production costs translates into lower prices for the customer. If there was no ‘globalization’ and ‘free trade agreements’ then the trade (imports and exports) in raw materials and finished goods would be difficult, resulting in poor economic outcomes for businesses, and thus the national economy. Poor economy results in inequality (the rich get richer through political connections, while the poor remain poor) poverty and suffering.
That’s a very different angle you have shown us.
Thanks for your comment
Castel Malawi vuto inabwera ndi phuma heavy i cant see them in Malawi for the next 10yrs . They will be gone by that time after exploiting Malawi and creating unemployment in our beautiful country. Carlsberg Malawi was the best awawa ndiamwenye in disguise 😂😂😂
John Zenus Ungapake Tembo and Aleke Kadonaphani Banda are asking why Malawi why. We worked so had to bring the royal company. Actually we offered them 50 years of protection and even under monopoly they still produced the best beer around. With a fast growing population market couldn’t have been the problem. Why are you acting like an HIV virus that kills the body that keeps it. Well overtaxing the very companys that sustain you is stupidity at its best. Next is Illovo. You have exposed it to ruthless hunters. And they are running wild.
we have so many professors –doctors –graduates now than KAMUZUS ERA —–BUT WHY ARE THEY FAILING TO TURN THINGS AROUND IN THE RIGHT DIRECTION ?? SURELY 1 DAY WE WILL ORGANISE A VIGIL OR TAKE THEM TO COURT FOR FAILING OR PULLING DOWN THE COUNTRY WITH THEIR FAKE SHIT OF PAPERS —–
TIPPEX GOVERNMENT
This is really sad…I bet the Company is well justified for taking such step…Assumingly, its has been overpaying taxes to the government such that they don’t want to stand any risk of losing further profits
Shaaaa
Sad news
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