Sucre Ethique - Fiji islands : 1000 FSC jobs to go

The Fiji Times - jeudi 1er juillet 2010

THE Fiji Sugar Corporation has embarked on a major cost-cutting exercise which will result in at least 1000 workers being laid off over the next 18 months.

CEO Deo Saran said the measures were necessary because of the company’s tight financial situation, caused by declining European Union sugar prices in 2009 and a delay in the mill upgrade program.

He said these resulted in an operating loss of $30million.

Mr Saran said immediate measures being undertaken were a reduced operating budget and manpower rationalisation.

"The budget provides for a reduction of $16.3million, representing 20 per cent of expenditure when compared to the previous year," he said.

"To achieve this level of cost reduction, it is imperative that crushing operations run smoothly. Interrupted crushing operations, regardless of their cause, whether breakdown in mill or inadequate supply, will have repercussions on expenditure levels."

Mr Saran said wage costs totalled $33m and to reduce costs, employees would be reduced from 2623 to 2015 in the crushing season.

This would represent a reduction of 23 per cent over the previous year.

"Measures are in place to further reduce the workforce to 1200 during the off season and 1500 during the crushing season.

"This would see manpower numbers reduced by around 40 per cent over the next 18 months.

"Initiatives required to achieve this level of reduction would include organisational restructure, outsourcing of non-core functions, streamlining of processes and centralising finance, human resources and technical support functions."

Besides a budget cut and manpower rationalisation program, Mr Saran said other measures would be taken such as elimination of all overtime payments. He said instead of overtime, employees would take time off.

FSC would also undergo a motor rationalisation program, he said, which would reduce its fleet by 30 per cent. All surplus vehicles would be disposed of, Mr Saran said. As well, all non-core assets such as surplus land, plant and equipment, decommissioned railway lines and scrap metal would be sold in the next 12 months, he added.