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CEPEP: We reduced workers’ salaries by 33.3% to ensure there’s no job loss

“[…] This decision [to reduce salaries by 33.3%], while contentious, directly protects the welfare of workers as that is the Company’s main priority at this time. This measure will ensure that there is no job loss at CEPEP…”

The following press statement on CEPEP’s decision to reduce the salary of its workers was issued by CEPEP chairperson Marilyn Michael: 

Photo: CEPEP employees work outdoors.

During the monthly meeting of CEPEP’s Board of Directors on Wednesday 26 May 2021, a decision was taken by the board to temporarily reduce the management fees of contractors and their workers. This decision took effect today, Friday 4 June 2021.

This decision, while contentious, directly protects the welfare of workers as that is the company’s main priority at this time. This measure will ensure that there is no job loss at CEPEP.

In 2020, workers were compensated for three months while at home. At the present time, we are unable to provide that level of financial support to 10,000 workers.

After careful assessment, the board took the decision to reduce the working hours of workers to four hours per day, reduce the teams by 50% so each worker will be working two days per week and a maximum of eight days per month. Consequently, their salaries will be reduced by 33.3% and this will also affect the management fees of contractors.

The company relayed this information to all contractors via a Zoom meeting on Wednesday June 2 2021 where their questions and concerns were addressed.

Photo: CEPEP workers on the job.

Chairman of the CEPEP Board of Directors, Ms Marilyn Michael reiterates:

“We continue to pay the salaries of 10,000 workers and have not sent any workers home. In order to operate effectively we have cut down the working hours of each worker and placed them in smaller rotating teams. As we battle the Covid-19 pandemic, we must be responsible when utilising public monies.

“At this time, we must implement stricter fiscal policies in the interest of maintaining the CEPEP programme and safeguarding the employment of the thousands of persons who depend on this organisation for employment.”

The CEPEP Company operates on government subvention and the Covid-19 pandemic has created a challenging economic period which has prompted the decision to reduce salaries and management fees. The CEPEP Company will continue to execute its mandate, protect the most vulnerable in society and maintain maximum safety standards for all workers as they conduct their duties.

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