Following the cascading developments over the past few weeks which saw Pula Steel being forced to shut down operations due to its failure to comply with the Department of Waste Management and Pollution Control regulations, the company has now announced that they have placed 190 of its employees on unpaid leave.
The shutdown, according to the company, constrained their finances which were already in red. Pula Steel Corporate Services Director Brian Mosenene confirmed the development saying the closure of the company impacted negatively on their company leaving them without any other option but to place the employees on unpaid leave. “We cannot afford to pay salaries because the plant is now closed,” adding that no production has been taking place since June 7th.
Whilst 190 employees have been placed on unpaid leave, Mosenene said 15 employees were retained, adding that the rest of the employees would be recalled once production starts. Although he could not disclose the amount of money the company is losing daily, he said 100 tonnes of production metal would be lost on a daily basis that the plant is shut.
According to Mosenene, the company’s pollution system was not working according to the compliance and monitoring standard resulting in the “closure to allow smooth correction of any irregularity to ensure that we comply with all issues of safety.”
Although Mosenene confirmed that they are currently installing the required equipment which is expected to be complete end of July, he could not give a specific date when they would reopen save to say “it is the decision that will be taken by government.”
