Barely month after Firestone Liberia layoff almost 600 of its employees MNG Gold Liberia, a Turkish gold mining company operating in central Liberia has terminated the services of at least 160 of its employees.
According to sources at the company the move was based on “bad business climate” in Liberia and a “fall in the world market price for gold”.
The company has also informed least 800 of its 1,700 Liberian employees would be redundant this year and additional could follow in later in the year.
A source told Liberia Public Radio that the redundancy is due to some “operation challenges” facing the company.
Our source added that although company recognizes the situation might burdens families of the workers, but keeping them at post will affect the company’s productivity even more.
“The local currency decline coupled with the rising costs of utility and taxes are also contributing to production cost in Liberia that has prompted MNG Golden latest action”, an un-named source told Liberia Public Radio on Tuesday.
“Additionally, labor cost and imported materials including chemicals have exceedingly doubled over the time”, a Liberian economist who preferred to be unknown added.
The company also placed on record, according to our source, that the number of workers that were reduced is far lower than being speculated.
The workers believe that the decision by the company to lay them off is totally “unfortunate and disingenuous.”
Meanwhile, Rick Davies with ID#208, who worked for the company as Mine Engineer for over a year, to told Front page Africa newspaper that he was totally dismay that the company has taken such decision at the time.
In the Davies’ termination letter posted online said: “The management would like to inform you that due to the less than favorable economic and financial of the company, coupled with the huge losses the company sustained in November 2018, as well as the higher than anticipated inflation rate in the county have rendered you as Mine Engineer Redundant.
“Regrettably this means your employment will be terminated effective May 31, 2019.
“Please note that this decision is not a reflection on your performance.
“Due to employment ending because of redundancy, you will be paid redundancy paid off in accordance with the Decent Work Act and will be done with the Ministry of Labor at a date to be announced later.”
MNG Gold Liberia management is yet to formally comment on the latest action.
Economic decline
According to the World Bank 2019 Liberia overview, deadline inflation reached an all-time high of 28.5% by end December 2018, fueled by significant depreciation of the Liberian dollar against the US dollar (20.3% y-o-y) and monetary expansion. The rise in the cost of living due to inflationary pressures and limited employment opportunities continue to undermine the welfare of Liberians.
The bank added; the current account deficit remained high (23.3% of GDP in 2018) as improvements in the trade balance were offset by the decline in donor transfer.
The MNG Gold Liberia is part of Avesoro Holdings Group founded by Mehmet Nazif Günal in the 1970’s and now employs more than 20,000 people and with over 70 trading companies with interests including Construction, Railways, Tourism, Energy production, Media and Finance and Air Cargo.
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