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MetEC to lay off workers
Abdulaziz Ahmed, deputy CEO of MetEC

MetEC to lay off workers

The Metals and Engineering Corporation (MetEC) — a state owned military complex – is to lay off a number of its employees, The Reporter has learnt.

This came following the ongoing restructuring of the Corporation under a new leadership. In this regard, the Corporation which currently has 20,000 employees has already sent 4,382 employees on administrative leave in which the majority worked on sugar projects contracted by MetEC.

MetEC, which recently faced wide public scrutiny following its failure to finalize a number of state mega projects, is forced to hand over some of the projects. Just a couple of weeks ago, the Corporation was told by the government to transfer unfinished sugar projects to the Ethiopian Sugar Corporation.

Following this MetEC has decided to send its employees who were working under those projects into administrative leave.

“We are working on restructuring the Corporation in many aspects,” Abdulaziz Ahmed, deputy CEO of MetEC told The Reporter. The layoffs are also part of a bigger restructuring task.”

“It also includes restructuring 14 main industries and 93 factories under the Corporation,” he added.

As far as the employees are concerned, we were told that there is an imbalance between the number of people employed and the actually needed, where the earlier is higher, an employee of the Corporation told The Reporter.

As part of the restructuring, the Corporation will also be split into two; so do the industries and factories under it. In this regard, those industries who are involved in manufacturing military related equipments and materials will be under the Ministry of Defense where as those involved in the manufacturing of commercial and civil equipments will stay under MetEC.

Industries that are involved in all military, civil and commercial tasks will be treated differently. In this regard, the fate of Bishoftu Automotive which is involved in both military and civil service is still under study.

A committee comprised of members from the Ministry of Defense and MetEC is looking into the case, said Abdulaziz. Following this, Bishoftu will be either divided into two or will stay under MetEC or the Ministry.

Moreover, when it comes to the fate of the 15 percent of employees of MetEC who are members of the national defense will be given a choice to either work under the Ministry or MetEC as a civilian.

The Corporation said it will finalize the whole restructuring process by the early weeks of October, 2018.

Established back in 2010 with 10 billion birr capital – MetEC has the aim to make fundamental difference and have a leading role in the industrialization of Ethiopia, reads its website.