MONROVIA, Montserrado — The head of the iron ore giant ArcelorMittal says he regrets the dismissal of more than 167 Liberians employed with the company.
ArcelorMittal Liberia’s Chief Executive Officer Michel Privé in a statement blamed the unfavourable economic environment for the company’s action.
“The company took the difficult but necessary decision to reduce its workforce as a result of continuing unfavourable market conditions and changes to the company’s operating model,†Privé said.
He said the mining industry is facing significant challenges as a result of the drop in iron ore prices. The situation, he said, has put pressure on mining producers to run their operations as efficiently as possible.
He added that changing the operating model and efforts to reduce costs is required to ensure the competitiveness of the company’s operations.
According to him, the company has a deep commitment to Liberia and its people. It was committed to making the significant investment after the war and has since led the way in the revitalization of Liberia’s mining industry.
The recent layoffs are in line with the company’s plan to align production with cost amidst the drop in the prices of iron ore on the global market.
In the statement issued, ArcelorMittal also announced that it is repatriating 24 expat workers in line with the redundancy plan.
ArcelorMittal is not the only multinational firm in Liberia that has been affected by the global drop in commodity prices. There are reports that the Putu Iron Ore Mining Company in Grand Gedeh has also shut down its operations in the country. Firestone Liberia Rubber Company began its redundancy last year with several employees affected.
The reports of growing mass redundancy in the country have raised fears among ordinary citizens.
Late last year, the Chairman of the ruling Unity Party, Varney Sherman, disclosed that the government has not achieved one-half of its investment plan as announced ten years ago.
Sherman made the statement on Dec. 22, 2015, at the 12th commencement convocation of the United Methodist University in Monrovia. He predicted more hardship in the next few years as national investments would stall.
The Director General of the National Bureau of Concession says the government is taking measures to respond to the ongoing mass redundancy and to buttress the economy.
Speaking Tuesday during the Ministry of Information press briefing, Ciata Bishop said the government had attracted about US$15 billion in foreign direct investment. She said, of this amount, the government had experienced an inflow of US$1.9 billion used to build infrastructures.
Bishop also added that the government had formulated an “out-grower scheme†which involves working with small farmers to increase productivity.
“The aim is to transform their level of farming from subsistence to a more suitable level in order to create employment opportunities,†Bishop said.
Featured photo by Flickr’s jbdodane
