Berger Paints: Sustainability challenge may force closure

… Management sacked employees

The threat to disrupt the operations of Berger Paints Plc, on Monday, reached its tempo, as the sustained strike action embarked upon by the company’s workers allegedly led to the dismissal of the company’s employees, Daily Times has gathered.

The Daily Times Nigeria, had reported on Monday, 19th June, 2017, that “Berger Paints challenges sustainability threat,” and noted that, just as the company in a release, said that it fixed the exit date of its gratuity scheme to December 2015, the members of staff may sustain their work to rule with the support of the Nigerian Labour congress” where the company’s management and the staff fails to reach a consensus.

Daily Times report, further pointed that stalemate in the ongoing Berger paints management and staff imbroglio may lead to protracted law suit which could be detrimental to the going concern, as sacking all staff and asking them to reapply could negate corporate governance standing of globally rated companies.

On Monday 19th June 2017, the workers protested over the stoppage of their gratuity payment, which has now entered the second week, a development, it has been gathered, had allegedly enraged the company’s management to dismiss all its employees. Indeed, this is a development, which a cross-section of experts claimed reflects “killing a fly with a sledge hammer,”also indicating management’s failure in dispute resolution.

Employees of Berger Paints Nigeria Plc,, with the support of the Nigerian Labour Congress (NLC) ,last week, launched a sustained protest at company‘s Oba Akran Road, Ikeja, Lagos State’s premises , demanding for the payment of their perks.

The company’s workers alleged that since 2015, the management had stopped paying gratuity to them. The protesting workers further alleged that efforts to make the management change its policy were rebuffed. They further alleged that the management failed to carry them along in designing policies that impact them.

The expected impact of such strike action by the company’s employees has continued to generate market hearsay, as a cross- section of market experts say that sustainability of the company is threatened, based on the growing crisis of confidence between the management and workers.

Mr. Godwin Anono, Chairman, Nigeria Professional Shareholders’ Association, in a telephone interview with The Daily Times, said that he witnessed the protest last week; and was surprised that the management allowed the issues to drag to this week.

“The moment I saw the protest, I knew that there is a problem; when you see staff demonstrating in front of their company, it shows that communication line has collapsed; and this has great consequences on the company.”

He said that irrespective of the development, the strike is going to have negative impact on the company .

He said,” it doesn’t augur well for the company and the shareholders, turnover will decline profitability will weaken, earnings will drop and expected earnings by shareholders at the end of the year will also drop.”

He said that the trend may affect the company’s shares , as future performance of the company may have been determined by investors, based on current developments.