Friday, October 30, 2020

Close to 350 BPC grey heads face axe

An undisclosed number of Botswana Power Corporation workers face retrenchment while close to 350 who are between the ages of 50 and 59 will be asked to retire.

The Sunday Standard has intercepted a BPC internal discussion document detailing how the corporation?s graying workforce will be asked to take early retirement to save the corporation money.

According to the document, the board at its meeting of November 10, 2006 tasked the BPC management to investigate how best to improve on the inducement amount proposed for those who have reached normal retirement age between 55 and 59. Sixty?seven of the 116 employees in this age group targeted for inducement to retire earn less than P62, 352. 00 per annum and it is mainly this category that is expected to take advantage of the provision.

If 50 percent were to take advantage of the provision, the BPC would save more than P14 million which is their current cost of employment. The more than P4 million that is being proposed as their exit payout would be recovered within a year and from year two BPC would start to save more than P1 million a month.

The BPC management has also come up with an early retirement package proposal for those aged between 45 and 55 years. Voluntary early retirement will be subject to management discretion and will depend on whether the BPC can afford the packages. Management has recommended that the two options be implemented with effect from April 1, 2007 and a provision of P10 million, which will be spent on packages, has been submitted to the board for consideration.

Scores of workers who can not be absorbed in the new BPC structure will also be offered retrenchment packages.

According to the document, ?management believes that, the initial focus should be on employees who have reached retirement age and are between the ages of 50 and 54. There are 214 employees in this age category. The figures indicate that the cost of keeping them until they reach their compulsory retirement age are more than if they were to go on early retirement.

The document further states that retrenchment in 2007/8 will only affect workers who have been with the BPC for less than six years whose job descriptions have been changed under the new structure and were unsuccessful in interviews for new positions. ?Restructuring for other jobs will have to wait for the new IT strategy because processes will have to be realigned with the new IT solution that will be implemented.?

RELATED STORIES

Read this week's paper

Choppies shareholders split over financials

Botswana’s biggest grocer Choppies Enterprises is slowly clawing its way up, but shareholders remain divided while the company founders have increased their...