Holcim, the largest shareholder in Lafarge Africa, announced on December 1 that it would sell its 83.8% stake in the company to Huaxin Cement Company, a Chinese cement manufacturer. Once finalized, the acquisition will give Lafarge Africa a $1 billion 100% equity valuation. But in a filing to the Shanghai and Hong Kong Stock Exchanges, Huaxin showed that the transaction could consequently prompt an obligatory takeover, a move likely to see Lafarge Africa delisted from the NGX while the firm converts to full ownership by Huaxin. This development has left Lafarge Africa employees apprehensive about their fate under Huaxin’s management. Drawing from the experience of Lafarge Zambia employees following a similar transaction, workers are apprehensive over potential negative impacts despite limited information about what to expect.
Lessons from Zambia
In 2021, Holcim sold its 75% holding in Lafarge Zambia, renamed as Chilanga Cement to Huaxin Cement, for $75 million. Workers in Zambia reported the occurrence of major difficulties after that change in ownership. Anonymous sources cited workers being offered new contracts, under less favorable terms, without the recognition of past service records, contract conditions, and human resource policies.
Many employees wanted to resign under these circumstances and thus forfeited their benefits. Although there were no announced plans for downsizing, labor practices and workplace policies reportedly made working conditions that indirectly compelled workers to quit.
Increasing Concerns in Nigeria
This assurance, despite being given by Holcim that the sale of its shares to Huaxin would not lead to layoffs or downsizing, nor would it result in adverse changes in employment terms, still leaves Lafarge Africa’s union representatives in doubt. They argue that similar guarantees were given during the Lafarge Zambia sale yet employees there witnessed unfavorable working conditions and job losses.
Union representatives in Nigeria have strongly expressed concerns over the likelihood of violations of international labour standards and workers’ rights under the new management. They have called on government authorities and regulators to intervene to protect employee interests.
A Lafarge Africa employee said that fair treatment was important:
“Treating employees with dignity is a fundamental human right. Holcim must enter into serious dialogue with representatives of employees to consider every available option to ensure that contracts, where necessary, are terminated correctly. Anything less is unacceptable.” The BusinessDay attempts to get Holcim’s response to the concerns have been unsuccessful as the company’s media team did not respond to email inquiries.
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