WINDHOEK – Air Namibia has pushed forward the throttle to implement the 2011 business plan that calls for a leaner and cost effective structure, a move which had sent some employees in a downward spiral of employment uncertainty with the airline.
However, yesterday the national airline said although it is unequivocal in its pursuit of implementing the business plan to the fullest, through the exercise of “business re-engineering”, it has no plans to force employees into retirement through retrenchment.
Instead, the airline said, “voluntary exit scheme, early retirement scheme, non-renewal of employment contract and out sourcing of opportunities” are some of the “options being considered and studied to allow for a leaner, fit-for-purpose Air Namibia.” Air Namibia’s turn-around business plan was approved by cabinet in 2011, but the airline yesterday did acknowledge that it has not, until this month, aggressively pursued the attainment of some key elements in the business plan of cost reduction and a lean organisation.
The business plan is said to be very specific on cost cutting percentages required and has given a precise number of employees needed for a lean organisation, at 595 employees from a more than 745 employees that were with the airline in 2011.
In the period between 2011 and now, the airline has already seen a reduction in staff complement, through the non-renewable of contracts as well as the departure of foreign pilots, who were exerting serious pressure on airline’s wage bill, bringing the stafff complement to just around 705.
However, much more work is required, and the General Manager for Human Capital Management and Corporate Services, Michelle Heitha yesterday told New Era: “It has become imperative to come up with a fit for purpose, smart and lean organisation.”
“We want to emphasise that this exercise of “business re-engineering” is multi-faceted, much work is still to be done to agree on the way forward,” Heitha said.
Employees fears for retrenchments were fueled by a memo that Air Namibia’s acting Managing Director, Rene Gsponer sent to them on October, 08 in which the airline announced a four-member steering committee strategic planning that would lead the organisation structure revising. The memo informed all departments to “focus on better efficiency and contain expenditure” while also ensuring that “all employees are fit for purpose as their respective roles.”
Gsponer informed the employees in a memo that the airline is already seeing positive trends with August 2014 being “the first month where we achieved a profit and on-time arrival performance was at a record high of 95.6 percent.”
“The management is now in the process of revising the organisational structure, [as] necessitated by the commitment made in 2011 upon approval of business plan. Part of this plan identified fleet acquisition, generation of revenue, and many cost reduction activities. To meet this objectives, the management is now aggressively exploring ways to meet these objectives,” Gsponder said in the memo to employees.
By Desie Heita