CRC Management clarifies on Crisis at Cavalla Rubber Corporation in Pleebo-Sodoken District

The Perspective
Atlanta, Georgia

June 14, 2011

The attention of the Management of Cavalla Rubber Corporation (CRC) has been drawn to reports published in the Daily Observer and New Democrat Newspapers on May 27, 2011, in which it is alleged that Management owes its employees for (4) four Months salary arrears as published in the New Democrat and (10) ten Months as published in the Daily Observer, which is the main under-pinning factor that led to the current crisis on the Plantation.

The CRC Management wishes to state that the story is un-true and baseless. Payment of salaries/wages to our employees is current and there are no arrears owed for (4) four or (10) ten Months as published to any employee.

In as much as the crisis in the Cote d’Ivoire has had a negative impact on the company’s operations, the Share Holders and Owners have continued their unflinching and overwhelming support by providing funding for payrolls, construction of a new Factory (Processing Plant), expansion program; renovation of the Hospital; support to social program; community development, such as the complete renovation of the Pleebo City Hall; and provision of scholarships. In addition, the process of constructing new living quarters for its employees have started.

Two months ago, the attention of Management was drawn to what was alleged to be miscalculation of premium, bonus paid to Estate employees and payment of 30 minutes rest period. Management immediately conducted an investigation and the error was corrected.

In parallel, a call for early election from October 2011 to 30th April 2011 was also discussed and agreed.

On May 23, 2011, Management received two letters under the signatures of Messrs. G. Habakkuk Nyenkan, Sr., G. Oliver Brooks, Bestman Saylee and Sam Jargba congratulating Management for the payment of premiums. On the same day Management received another letter suggesting a pay rise from $0.03 for a kilo of rubber to $0.25 per kilo of rubber otherwise workers will lay down tools at the end of May.

Management has maintained that it will work with the recognized leadership of the workers to address all concerns and that the Labour Law and the Collective Bargain Agreement between the workers and Management remain the best frame work for addressing issues of salary/wages and condition of work for employees, Management also un-equivocally maintains that it will not in any way tolerate, encourage or recognize a parallel leadership, as to do so will under mine peace and stability on the Plantation.

Management also wants to use this medium to re-assure the people of Maryland County, the Government of Liberia that it stands by its commitment to do business in Liberia and it will respect the laws of Liberia; abide by the policies and regulations laid down by the Government of Liberia. Management will continue with its social responsibilities for its employees and the larger communities; will continue to provide training and will create more jobs. However, in return, Management expects that its investments which now includes, a new Factory (Processing Plant), expansion program, its employees, will be protected at all times; that we all will respect the rules of laws; that disciplines will remain the hall mark; and dialogue and positive engagements will be encouraged between and amongst employees as a way of creating an enabling environment for peace and development in Liberia.


By: Martin Nyeka
Director, Community Services and Public Relations
SIFCA Group, Liberia