On December 1, Swiss cement maker and majority shareholder in Lafarge Africa, Holcim, introduced an settlement to unload its 83.8 p.c stake in Lafarge Africa to the Chinese language cement maker, Huaxin Cement Firm. The deal, upon completion, would give Lafarge Africa a 100% fairness worth of $1 billion.

In a disclosure to the Shanghai and Hong Kong Inventory Exchanges, Huaxin indicated that the acquisition may set off a compulsory takeover, doubtlessly leading to Lafarge Africa being delisted from the Nigerian Alternate Restricted (NGX), with Huaxin buying full possession of the corporate.

Holcim’s determination to divest its stake to Huaxin has sparked considerations and heightened uncertainty amongst Lafarge staff. With little to no readability on their future beneath the brand new possession, workers are agitated over potential opposed impacts, citing the expertise of Lafarge Zambia staff following an analogous divestment by Holcim.

In 2021, Holcim offered its Zambian operations to Huaxin Cement Firm. Much like Nigeria, Holcim beforehand owned a 75 p.c stake in Lafarge Zambia (now Chilanga Cement), which was offered to Huaxin for $75 million.

Learn additionally: Huaxin values Lafarge Africa as excessive as $1.6 billion

Following the switch of possession from Holcim to Huaxin in Zambia, former staff, talking anonymously, reported to the Lafarge Africa union that they have been provided new employment contracts with much less beneficial phrases in comparison with their earlier agreements. They alleged that human useful resource insurance policies have been disregarded, contract phrases weren’t honoured, and prior lengths of service have been neglected.

Because of this, quite a few staff resigned, forfeiting their employment advantages. Allegations counsel that, though there have been no official plans for redundancy or downsizing, the corporate adopted office circumstances and labour practices that not directly pressured staff to depart, prompting abrupt departures. Eyewitnesses estimated that roughly 80 staff resigned inside three months of Huaxin’s takeover. Nonetheless, an area information report by the Zambian Observer indicated that 65 staff had resigned throughout the first 10 months beneath the brand new administration.

Roughly 10 months after the acquisition of Lafarge Zambia by Chinese language-owned Huaxin Cement, Brenda Tambatamba, the nation’s Labour Minister, visited the corporate in response to widespread complaints about deteriorating working circumstances. In line with the minister, employees alleged vital modifications to their phrases of service and raised considerations over the exclusion of Zambian senior managers from key administration conferences.

In protection of Huaxin Cement’s insurance policies, the corporate’s Chinese language CEO defined that the state of the plant on the time of the takeover was under expectations. He additional attributed the reliance on expatriates to a wave of resignations amongst Zambian workers in search of ‘greener pastures.’

Nonetheless, considerations over the acquisition had surfaced even earlier than the sale was finalised. In July 2021, the Mine Staff Union of Zambia revealed they have been participating with Lafarge Zambia’s earlier homeowners, Holcim, to make sure staff acquired their terminal advantages.

Learn additionally: Lafarge Africa to be acquired by Huaxin Cement in main shareholding shift

Talking to an area information outlet, George Mumba, Union’s secretary common, expressed fears amongst staff that the brand new possession would possibly implement unfavourable service circumstances.

“There may be worry that the brand new homeowners’ circumstances of service shall be materially completely different. Some long-serving staff fear they could lose out on their advantages as new measures might be launched to frustrate them into resigning,” the secretary-general remarked.

To realize a correct perspective of the scenario in Zambia, BusinessDay spoke to the staff of Chilanga Cement. One of many engineers famous that a number of the allegations have been ‘not true.’

He mentioned, “When the takeover occurred, we maintained our contracts and circumstances of service. It’s not true that we have been provided new contracts with much less remuneration.

“Sure, the Chinese language have their very own points, however no contract was renegotiated. Not less than Lafarge made certain that our salaries and different circumstances of service remained intact.”

Regardless of the clarification offered by some Chilanga Cement staff, Lafarge Africa workers are nonetheless elevating considerations, calling on Holcim to compensate employees unwilling to transition to Huaxin, in step with worldwide finest practices.

The workers additionally expressed disappointment with the style of strategy utilised by Holcim in saying the deliberate sale.

In line with them, the Worldwide Labour Group beneficial that employees or their representatives ought to be supplied with related info on a specific situation earlier than making selections on issues of main curiosity corresponding to mergers and acquisitions.

The workers be aware that because the December 1 announcement, they’ve been scrambling for details about their future. After the city corridor, staff famous that administration provided no concrete particulars concerning the plans for employees post-divestment, urging staff as an alternative to “stay calm and proceed work.”

Nonetheless, this reassurance has carried out little to quell rising apprehensions. In line with insiders, no engagement with the workers union has occurred because the announcement, leaving employees feeling deserted.

Opposite to assurances offered to staff and union representatives that Holcim’s sale of its whole shareholding to Huaxin wouldn’t affect employment, lead to redundancy, or result in downsizing, union representatives stay sceptical.

They argue that related commitments have been made through the divestment of Lafarge Zambia, but employees confronted opposed circumstances and job losses.

Drawing from the experiences of former Lafarge Zambia staff, the union has expressed deep concern over the potential lack of respect for human rights and worldwide labour rules beneath the brand new administration.

The corporate’s workers union has appealed to regulators and authorities authorities to intervene and guarantee worker rights are protected.

“Holcim can not pressure staff to work beneath a brand new employer by means of the guise of a share sale. Staff have the suitable to decide on whether or not to proceed with the brand new firm or not. Nigerians usually are not belongings to be offered,” a workers member mentioned.

In line with a Lafarge workers member, “Treating staff with dignity is a elementary human proper. Holcim should interact in dialogue with worker representatives to debate accessible choices and make sure that contracts are severed correctly. Something much less is unacceptable.”

The workers argue that Holcim’s adherence to worldwide labour norms shouldn’t be selective however utilized persistently, whatever the area.

Citing Part 10 of the Nigerian Labour Act, the workers member famous that the switch of employment from one employer to a different requires the worker’s consent and the endorsement of an authorised labour officer.

Because the proposed divestment looms, Lafarge Africa staff stay in limbo, with no clear solutions about their future. The union’s name for regulatory oversight has intensified as workers brace for potential fallout from the sale.

Efforts to get Holcim to answer the problems have been abortive as the corporate’s media crew didn’t reply to e-mail inquiries.