Troubled national rail entity TransNamib has resolved to issuing voluntary severance packages as the freight and logistics company struggles to make ends meet in the face of reduced cargo volumes and redundant positions.

The information is contained in a staff memo dated 03 November 2021, seen by Nampa.

The exercise is wholly voluntary, TransNamib boss Johny Smith assured the employees.

“This process will begin in earnest in November 2021 to take effect at the end of each month from November 2021 till end of March 2022 and will entail a voluntary early retirement exercise (strictly according to the TransNamib Retirement Fund Rules), as well as for qualifying employees in specific business units that have been deemed non-core to TransNamib as part of its Integrated Strategic Business Plan,” Smith says.

TransNamib finds itself between a rock and a hard place and is fighting for survival.

“The voluntary exits are necessitated by TransNamib Holdings Limited experiencing a substantial decline in cargo volumes, as well as some positions having become redundant as a result of certain services like roads operations having been discontinued.”

As a result, “it has become necessary to reduce the staff complement of the company to match its present business pattern and structure. After thorough consideration of the company’s position within the industry, the board of directors has resolved that in order for the company to maintain its survival, viability and competitiveness, the company has no other option but to conduct a rightsizing exercise.”

According to the memo, through the exercise, TransNamib endeavours to optimally, efficiently and effectively utilise the company’s human, financial, operational and supporting resources.

“As a result, the board of directors has considered it prudent to make this offer only to employees who are employed within the non-core and support functions of the business, as well as employees who are within five years of normal retirement,” Smith added.

The offer is generally open to all employees, except but not limited to shunters, assistant train drivers, train drivers, DE fitters, platelayers, trackmen, track welders and engineers.

The offer comprises of severance pay of one week’s remuneration for each year of continuous service with TransNamib, one month’s notice on retrenchment, and one week’s special notice payment as per the recognition agreement with the trade union representing the employees.

“It is imperative to note that the qualifying employees will not all receive the applicable offer at the same time, since the process will be staggered as best financially viable for the company from end of November 2021 until end of March 2022,” the chief executive officer said.

He goes on to say: “It must be further emphasised that this is a voluntary offer and that no qualifying employee will be forced to accept it, and it should be seen as an action in good faith by management to prevent the possibility of forced retrenchment.”

The applications commenced on Wednesday and will be open until 17 November 2021.

Source: The Namibian Press Agency