By Our Staff Writer
Just days after Firestone natural rubber plantation announced it will in April begin laying off some 800 workers, the Liberian government is calling on the American company to “delay the planned layoff”.
Firestone, which is Liberia’s largest rubber plantation some 45 miles outside Monrovia and a subsidiary of Bridgestone Americas, Inc, last Monday said it has taken the decision to slash its workforce because its losses are “continued and unsustainable”.
But on Thursday, March 21. 2019 a Ministry of Information statement signed by Minister Eugene Nagbe said it had earlier this week initiated talks with Firestone: “The Government of Liberia held a constructive meeting with the management of Firestone concerning its plan to lay off workers because of financial losses the company says it has sustained in the past 10 or more years.”
According to the government’s statement, “the meeting continued on Wednesday, March 20 and fielded a conference call with Senior Management at the company’s headquarters in Nashville, Tennessee, U.S.A.”
Those who took part in the conference call were an array of Government officials attended the meetings, which were held at the Ministry of State for Presidential Affairs.
During the discussions, the Government said it requested a negotiated settlement that will prevent or delay the planned layoffs, with the CDC government proposing to work with Firestone to address concerns about its current business model.
In response, the Management of Firestone is said to have informed the Government that the company has incurred losses of around USD $20 million annually for the past 10 or more years and is at a point where the situation can no longer be sustained.
According to the Information Minister, the Firestone Management clarified that the layoffs will actually affect 600 people, as the other 200 workers are normal retirees.
The company further informed the Government that 200 of the affected employees work at its Rubberwood plant which has been shutting down in the past several years because the USD $16 million it invested in the plant has not proven viable for the company. As a result, the company plans to sell the business or shut it down totally, the Information Ministry’s statement said.
The Management is also said to have agreed to remain engaged with the Government on different options the GOL is proposing.
Meanwhile, a third meeting has been scheduled for early April when members of the Senior Management team from Nashville will be in the country.
The Government is therefore calling on all concerned to remain calm and law-abiding as it dialogues with Firestone to reach a reasonable outcome.
News of Firestone’s laying off of hundreds of workers comes at a time Liberia is experiencing a serious economic slum, with a very high unemployment rate.
According to one statistics from indexmundi, “Unemployment, total (% of total labor force) (modeled ILO estimate) in Liberia was 4.00 as of 2017. Its highest value over the past 26 years was 5.60 in 2007, while its lowest value was 3.60 in 2014.”
The government and some international groups have repeatedly said that the rising unemployment rate, especially high youth unemployment is a national security threat.
Back in 2008, the Liberian government and Firestone signed an agreement to Amend and Restate the Concession Agreement between them, modifying the 2005 Concession Agreement and it came after extended negotiations.
Liberian officials at the time said that the Amended Agreement is estimated to result in an increase in revenues to the Government for 2007 of nearly $2.5 million.
Apart from the fiscal provisions, Firestone would be subject to
generally applicable Liberian law.