226 jobs cut as sugar producer J. Wray and Nephew faces rising production costs

J. Wray and Nephew Limited, operators of the Appleton Estate, revealed that 226 workers have lost their jobs. The company indicated that due to high operational costs, losses and severe dip in sugar prices, they had no choice but to close down the Holland Estate and the Casa Marantha Estate, both located in St. Elizabeth.

Chairman of J. Wray and Nephew, Mr. Clement Livingston, revealed that the company is seeking to make the redundancy process favorable for the laid-off workers by providing job training, alternative employment and scholarship opportunities for their children.

"J. Wray and Nephew is aware of the harsh economic conditions that the displaced workers may face and will put measures in place to help mitigate some of these realites. However, the challenges we face in sugar production are enormous and demand this kind of action", he said.

Mr. Lawrence hastened to add that: 

"This doesn't in any way, shape, or form signal any exiting from sugar. We're simply dealing with this area, which is least productive, most costly, most challenging and difficult for us when we did a broad-scale analysis to make that change to cauterise the losses. That, simply, is it." 

He confirmed that the company remained committed to Jamaica's sugar cane industry, evidenced by the recent multi-billion dollar investment in the Joy Spence Appleton Experience in St. Elizabeth. 

Giving insight into the factors that led to the job cuts, the Chairman explained that Holland is below sea level. 

"You have to pump water off the land. It takes electricity to operate those huge Farbus pumps, and so you can see right at the outset, it's challenging. And even areas that we have to irrigate, you don't irrigate with the same level of cost as it is to pump water off the land. So that really is the fundamental story surrounding our actions," he noted.


The issue was made worse because of several major factors that affect the sugar cane industry. In October 2017, preferential treatment was removed by the Europian Union, which no longer facilitates a guaranteed sugar quota from Jamaica and other Caribbean sugar cane producing countries. Also, Jamaica's sugar industry has still not been able to produce the precious commodity at cheaper production costs and so therefore dismally competes with other producers who have been able to produce greater yields more efficiently and cheaply. 

The J. Wray and Nephew Limited Chairman revealed: "The production of sugar cane has declined, and global purchasers have been able to purchase sugar at far lower prices than Jamaica has been able to support."

Over the years Jamaica's sugar industry has been plagued with issues that have hampered it from contributing more robustly to the economy. From the razing of the sugar cane to the harsh impact of climate change: severe drought to heavy flooding, the industry has suffered heavy losses.


Although the Holland and Marantha Estates will be closed, the world famous Appleton Estate will continue production. The factory will also continue to accept sugar cane from private famers and the New Yarmouth Sugar Estate.

J. Wray and Nephew and its subsidiary Appleton are owned by the renowned Italian alcohol beverages company Campari.



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References:
Investors Choice - http://icinsider.com/shocking-sugar-production/
The Gleaner - http://jamaica-gleaner.com/article/lead-stories/20180823/axed-more-200-jobs-cut-j-wray-nephew-shuts-down-sugar-operations-st
The Observer - http://www.jamaicaobserver.com/front-page/226-jobs-cut-j-wray-nephew-shuts-down-two-sugar-estates-in-response-to-heavy-losses-depressed-prices_142270




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Dangers of Ignorance: Jamaican employees resign their jobs with no compensation to get!

It was revealed by the Ministry of Labour and Social Security (Jamaica) that an alarming number of Jamaican workers are resigning from their jobs expecting to receive redundancy payments.

Acting Director of the Pay and Conditions of Employment Unit within the Ministry of Labour, Patreena Minto-Powell said, "There is a misconception out there among the public, especially employees, that when they resign, the company should pay them for their years of service. When you explain to them, it is really sad because some of them resign after fifteen (15) years of employment, but they didn't take the opportunity to come to the Ministry before [they resigned]."


Minto-Powell revealed that she has been seeing these cases on a daily basis but cannot give a specific figure because they do not qualify as true redundancy cases. The Acting Director urged employees contemplating resigning from their jobs to first consult with the Ministry to ensure that they make an informed decision.

According to records from the Ministry almost 1,700 individuals filed complaints regarding redundancy and termination last year (2017). Minto-Powell however indicated that in most cases any grievances workers had with companies were resolved through a simple phone call or letter, while in other cases resolution was sought through mediation or court proceedings.

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References

Red Stripe Jamaica Increases productivity while Cutting Staff

Red Stripe Jamaica (Desnoes and Geddes), will make eight positions redundant in 2018 with most choosing voluntary retirement, an official has indicated. 

It comes as the company launched a new plant to increase productivity.

According to Ricardo Nuncio, managing director at Red Stripe, these improvements will result "...in some employees gaining new opportunities for growth and development through promotions, lateral moves and job enrichment. Regrettably, as part of these changes, eight roles were made redundant."

He further stated, "Red Stripe wishes to thank our eight employees who will exit the business at the end of December for their dedication and contribution to Red Stripe over the years and offer them best wishes and success for the future.” 


Nuncio added that the staff reductions are not directly related to the new plant which added 80 new jobs in the return of local manufacturing for the export market. 

“We will hire more than that as we expand towards 2020,” he said.

Red Stripe currently employs 340 persons with an additional 1,000 in Celebration Brands, its distribution joint venture with Pepsi.  

The managing director revealed that over the past two years, Red Stripe has implemented a number of changes designed to ensure it holds the right tools, systems, organization and resources that will deliver its 2020 ambition.  

"In 2017, we rolled out a new enterprise resource planning system, HEI-Core Single Client and installed a new packaging line. We also continued to seek out more efficiencies through the simplification of complex processes, job redesign and streamlining our ways of working. As part of this drive at process improvement and to increase productivity levels, Red Stripe will also reorganize our shift pattern structure from 12-hour shifts, seven days a week to 8-hour shifts, five days a week effective January 2018," Nuncio stated.

The company continues to improve efficiency levels at the island’s brewery owned by beer giant Heineken International. Red Stripe spent nearly US$18 million on its new line for the export market. 

The new line 8 will nearly triple the brewery's production to 26,000 cases per day or one million bottles of the Jamaican beer for the domestic and international markets. Also, the company now runs its plant on cheaper liquefied natural gas which powers over 90 per cent of its energy needs. 

The company's top export markets are the United States and Canada, with two million and 700,000 cases in annual shipments, respectively. As at July 2017, the company recorded 15 per cent market growth in the American focus cities of Miami, Tampa, Orlando and Atlanta.


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References

Signs you could lose your job.

Dear Career Advisor:

I am seeking your advice on a matter. I have been on this, my first job, for a little under two years. I have been enjoying the job; however, recently there have been a few incidents that are a bit perplexing. My salary cheque bounced twice in three months, and each time it took nearly two weeks to get a replacement cheque. The accountant seems to be dodging daily suppliers, and I overheard a co-worker say that we recently lost a big contract. My spouse thinks it’s time I start seeking a new job; she feels that I am about to lose this job as the company seems to be in trouble, and if they decide to cut staff, I will be the first to be let go.

Do you think the company will close? Do you think I will lose my job, or is it that this phase will soon pass? I really fear the unemployment line. What should I do, stay or try to leave soon?

Regards,

Trevor B

Dear Trevor:

It will be difficult for anyone to precisely predict what will happen next; whether the company will close its operations or reduce staff. It is most probable that the management is fighting tooth and nail to keep the doors of the establishment open. The incidents you have outlined are among the signs that usually indicate that a business venture is having serious operational challenges; often financial or management related. In general, any or all of the following might indicate that there is trouble in the camp:

Weak financial status — losing big contracts or clients, late payments to suppliers, tax and other statutory returns, or late payment of salaries

Weak industry — similar companies in the industry are facing operational challenges, including layoffs, redundancies and closure

Cost cutting. Management sends frequent reminders of the need to cut costs and contain budgets

High employee attrition rate. Senior-level persons are resigning and there is a general high turnover rate.

Freeze on hiring. No replacement when employees quit

Negative publicity. The company is often featured in negative news or scandals

Change in management. Sudden or wholesale change in management.

Would the occurrence of any or all of the above automatically mean that your company is about to fold? That would be difficult to say without intimate knowledge of the company’s operations. Only time will tell.

In response to your other concern, it is a strong possibility that you would be among the first to go if the company decides to cut staff as a common practice is to follow the last-in-first-out rule, which simply means that those who were hired last are among the first to be considered if the company decides to cut staff. This, however, does not mean that you will be the first to go. Evaluate your current contribution to the company: is your service one that could be considered indispensable or not easily replaced?

Deciding to jump ship or stay with the company will not be an easy decision. You will have to balance commitment and loyalty to the company against your personal values and needs.

On the one hand, if you remain with the company during these difficult times, it can be a collective and rewarding feeling of triumph... See full article here: http://www.jamaicaobserver.com/magazines/career/Signs-you-might-be-losing-your-job_58651