Castel’s appeal for pity continues with retrenchment

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Castel will carry out the second phase of retrenchment this month as the company continues its appeal for pity over high taxes.

According to a letter by Castel’s Director of Human Resources Naomi Nyirenda dated 30 September, the employees will be managed out by 25 October.

The exercise comes months after the company warned that it could close its operations in the country due to high taxes charged by Malawi Revenue Authority (MRA) on alcohol beverages.

Castel Malawi Limited Managing Director Herve Milhade complained in June that MRA had started charging 90 percent on production cost as tax.

Later, the beverages manufacturer said it will chop 300 employees within twelve months.

Nyirenda said those that are to be affected include workers whose performance has been poor, those with disciplinary issues, close to retirement, identified as surplus in their departments and those whose positions will be declared redundant.

She added that the fired employees will get severance allowances, one month salary in lieu of notice, leave grants and commutation for accrued leave days.

French Groupe Castel bought the brewery from Danish company Carlsberg in 2016. Carlsberg was established in Malawi in 1968.

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