Swiss cement giant Holcim, the majority shareholder in Lafarge Africa, has announced plans to divest its 83.8% stake in the company to Chinese cement manufacturer Huaxin Cement Company.
The deal, revealed on December 1, values Lafarge Africa at $1 billion and is expected to grant Huaxin full ownership of the Nigerian cement producer upon completion.
In disclosures to the Shanghai and Hong Kong Stock Exchanges, Huaxin Cement indicated that the acquisition could prompt a mandatory takeover, potentially delisting Lafarge Africa from the Nigerian Exchange Limited (NGX). This development has sparked apprehension among Lafarge Africa employees, who cite past experiences with Huaxin’s acquisitions as grounds for concern.
Employee Concerns Over Uncertain Future
The announcement has left Lafarge Africa employees uneasy, as many fear a repeat of the challenges faced by their counterparts in Zambia after Holcim sold its 75% stake in Lafarge Zambia to Huaxin in 2021. In Zambia, employees alleged that Huaxin implemented unfavourable workplace policies and disregarded prior contracts, prompting a wave of resignations.
Reports from Zambia indicate that up to 80 employees resigned within three months of the transition, citing adverse working conditions. Former employees claimed their lengths of service were disregarded, contracts were altered without consent, and benefits were forfeited. Zambia’s Labour Minister, Brenda Tambatamba, later intervened after receiving widespread complaints about Huaxin’s management practices.
Despite some Zambian employees defending Huaxin’s practices and denying claims of renegotiated contracts, Lafarge Africa staff remain sceptical. Drawing from Zambia’s experience, they fear similar outcomes in Nigeria, including job losses, reduced benefits, and less favourable terms of service.
Calls for Regulatory Oversight
The Lafarge Africa staff union has called for regulatory and governmental intervention to protect employee rights. Citing Section 10 of the Nigerian Labour Act, which requires employee consent and labour officer endorsement for employment transfers, the union has urged Holcim and Huaxin to adhere to international labour standards.
Union representatives have also criticised Holcim’s approach to the announcement, highlighting the lack of prior consultation with employees and their representatives. According to the International Labour Organization, workers should be informed and engaged on matters of significant interest, such as mergers and acquisitions.
Employees argue that Holcim should provide severance options for those unwilling to transition to Huaxin’s management. “Treating employees with dignity is a fundamental human right,” one staff member said. “Holcim must engage in dialogue to ensure contracts are severed properly and rights are respected.”
Holcim Silent Amid Rising Tensions
Attempts to obtain a response from Holcim’s media team regarding the concerns raised by Lafarge Africa employees have been unsuccessful. Meanwhile, insiders report a lack of engagement between management and the staff union since the announcement, leaving workers feeling abandoned.
Although assurances have been made that the divestment will not lead to redundancies or adverse changes in employment terms, employees remain unconvinced. The union has emphasised the need for regulators to closely monitor the transition to safeguard against potential labour violations.
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