Sacked workers sue Bugesera steel firm

Imana Steel Ltd is bathed in a shadow of its former self. When The New Times visited, there was no more beehive of activity which characterised the busy plant located in Bugesera.

Monday, May 30, 2016
Workers at Imana Steel Ltd during the production. Aggrieved former workers laid off by the company have accused its managers of irresponsibility and exploitation, saying they are not even given protective gear such as hard hats. (Frederic Byumvuhore)

Imana Steel Ltd is bathed in a shadow of its former self. When The New Times visited, there was no more beehive of activity which characterised the busy plant located in Bugesera.

The few machines on sight are idle, and the handful of workers on the premises are idle... ...everything looks abandoned inside the facility’s compound. Machines which used to make noise crashing scraps of metals to make iron bars and other products are rusting away.

The company used to employ more than 180 workers but 120 of them, especially those who used to work in the factory, are no longer in employ.

What went wrong? The management laid off all of them in what employees say was an illegal act and, as a result, they are in the process of taking legal action against their former employer.

At the neighbouring centre of Ramiro sits Emmanuel Rugaruka and his colleagues. The 30-year-old is among about 120 employees who were laid off last month. The centre is home to several people who were fired. Over 30 others were laid off previously.

How it started

Employees say since they started working with the company, working conditions were poor and risky and officials would always turn a deaf ear to their complaints.

"We always complained that we worked under high temperatures without safety equipment, no gumboots, no anti-heat equipment or hard hats. We were at risk of suffering from air pollution diseases, had no clean water, no toilets, no insurance and some of us had no work contracts,” says Rugaruka.

The employees say they also worked overtime having been obliged to work 12 hours per day instead of eight hours as per the labour law.

Their complaints reached the central government and, in February, the Minister for Public Service and Labour, Judith Uwizeye, and other public officials visited the company. She ordered the steel firm to address employees’ issues.

"We have been receiving reports of lack of protection and security, working in such a factory requires special equipment like gumboots, helmets, among others. We asked the employer to provide those needs in not more than a month,” Uwizeye said after touring the factory in February.

Illegal dismissal

However, as the workers warmed for better working conditions, they received letters terminating their contracts."We were fired illegally over demanding our labour rights,” says Rugaruka.

"We first worked without work contracts but later we complained and we were given contracts. However, apart from documents we signed on, it added up to nothing; working conditions were still deplorable and risky,” he adds.

"Sometimes payments were delayed and when we complained, the employer fired us.”

The company management reportedly told the workers in the termination letter that they were preparing for restructuring but employees say this was wrong, arguing that they should have been suspended instead.

"They never gave us all they owed us as terminated employees, they only gave us a month’s notice and paid us the days we had worked, ” Rugaruka said

Effect of poor occupational safety

Some employees claim that they got injured while on duty, three died, while others were diagnosed with respiratory diseases, according to their accounts and labor officials.

"After spending many days in the heat inside the factory, I felt bad and could hardly breathe. I was suffering from constant chest pain, which worsened and I was diagnosed with pneumonia. I was fired a few days after treatment,” said one of the affected workers only identified as Sekamana, who worked in heating room.

"I was fired without indemnity, no leave payment, no insurance paid for me and Imana Steel Ltd never paid the fees for the remaining days of the contract,” says Sekamana.

Imana Steel Ltd workers at work. (Frederic Byumvuhore)

Jean Damacsene Niyibizi, another employee, was injured by a metal bar that ripped through his leg.

"I have been injured while at work, the company helped me get treatment but I have been sacked before my contract expired and was not paid for the remaining period. I checked for Rwanda Social Security Board (RSSB) contribution but nothing is there, our rights have been violated,” says Niyibizi.

Embattled firm responds

Ravi Kumar Srivastava, the in-charge of Financial Control at Imana Steel Ltd, said the company handled the termination process in a professional manner to pave way for restructuring which is ongoing.

He said the affected employees had become a security threat to the company managers whenever a problem arose and the company opted to suspend them.

"We had some equipment but when we were asked to add more, we provided them and now we have all the requirements. We are restructuring so everything has been taken down to zero,” Srivastava said.

"We followed the right procedure before they left. We gave them a one-month notice, paid annual leave and a month’s salary,” he said, adding that after the restructuring, the firm will resume operations and management would probably recall those with good conduct.

But officials from the Ministry of Public Service and Labour, as well as the Labour Congress and the Brotherhood-Rwanda (Cotraf), say the case should have been handled otherwise.

"We are concerned by the fact that the employees were fired the moment they expected positive changes from the employer. The employer has the right to fire employees only when the former fulfills the requirement but for Imana Steel case, they never did so,” Francois Ntakiyimana, Cotraf general secretary, said.

"Most of them have not been given payment for their annual leave; some have sued and will be in court next month.”

Javan Kundabakure, the chief labour inspector at the Ministry of Public Service and Labour, said the employer would have suspended the employees if it had been the issue of restructuring.

He said some workers who have not received what they thought were their entitlements still have the right to raise their issues.

"We have written to the company management to come and we discuss the way forward, we are expecting them this month. Some of the employees have opted to sue while others either lack means or still want to earn from the company,” said Jean Damascene Kananga, the Bugesera District labour inspector.

The New Times understands the legal suit is currently before Gasabo Intermediate Court.Imana Steel Ltd is a joint venture between Metal Cans and Closure Kenya Ltd and Sigma Group of Companies of

India. It started operations in the country in 2013.

editorial@newtimes.co.rw