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| Sunday, 21 December 2003 |
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Reckitts closes manufacturing and logistics operations Reckitt Benckiser (Lanka) Ltd (RBLL) suddenly terminated 159 employees without any reasons last week, said a trade union activist. He said the company is in the process of relocating most of its production lines to India and also intends to outsource a few products from a local company (Moslanka Ltd). On December 18, the company suddenly closed its gates, leaving most of the employees on the street, he added. The recently introduced Voluntary Retirement Scheme (VRS) is paltry and employees are not happy with the scheme, he added. "We want our jobs, and not the puny VRS," said many of the employees. A statement from RBLL announced the closure of its in-house manufacturing and logistics operations with immediate effect. This move falls in line with cost cutting procedures deployed to halt continued losses and productivity issues experienced over the recent years, and a stringent re-focusing of strategy to garner a better long-term status for Reckitt Benckiser in Sri Lanka. The company decided to downsize its consistently haemorrhaging manufacturing and logistics units by offering a VRS to employees in specific divisions, which was initiated on November 4, 2003 and concluded on November 21, 2003. Following the VRS "with attractive incentives" being opened to employees for the above mentioned 18 days, RBLL engaged in an exhaustive three to four weeks of negotiations spearheaded by the management and encompassing the Labour Department, union and staff representatives. These discussions have not yet yielded any concrete agreements. Hence, RBLL has decided to announce the closure of its in-house manufacturing and logistics departments, the company said. "These functions will now be outsourced to other local manufacturers who will be required to produce at the same international standards. RBLL also continues its commitment to outsource locally, Sri Lanka's favourite brands so as to keep a majority of jobs with Sri Lankans. We remain committed to offering superior products at affordable prices to consumers," it said. Sri Lankans will be able to purchase these brands without any interruption. This action will enable the company to primarily concentrate on brand equity building, marketing and distribution. It would be advantageous both for consumers and stakeholders. The bulk of the manufacturing (80 per cent of the present product portfolio) will still be manufactured in Sri Lanka by third parties under strict supervision and quality assurance of Reckitt Benckiser (Lanka) Ltd, the company said. |
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