The management of the Volta Aluminium Company (VALCO) said 80 employees will be made redundant from October 1.
Mr Ron Helton, Managing Director, told the company's workers that the decision had been taken to further improve "our efficiency to remain competitive in the face of the very difficult challenges posed by the worldwide aluminium industry".
He said "with consistently low aluminium prices over the last several months, which shows no signs of improving soon, coupled with reduced operating capacity since March, 2002, VALCO finds itself in severe financial squeeze".
Mr Helton said the redundancy would affect both unionised and non-unionised employees. As part of the exercise, "an evaluation and force-ranking system based on merit, potential skills in current job, physical and mental ability to assume other jobs as well as conduct will be used for the redundancy exercise". Employees wishing to go voluntarily, may write to their department heads by 3pm of September 26.
Mr Helton said low metal prices, the lowest in three years, low demand for metal, low volume of metal produced as a result of the one line shut down in March, had led to significant revenue losses.
He assured that work is starting immediately with the union and all other stakeholders to develop a redundancy package in line with the provisions of employees' conditions of service to minimise the impact of the exercise on employees and the company.
