Industrial relations challenges in UTEXRWA have been resolved- UTEXRWA Boss

Early this year, Usine Textle du Rwanda (UTEXRWA), was characterised by industrial relations challenges, where over 500 workers went on strike citing lack of communication with the management. The Sunday Times Reporter Frank Kanyesigye talked to Kishor Jobanpuntra, Chairman of UTEXRWA about the current situation in his company. Excerpts; QN: What is new at UTEXRWA? ANS: Utexrwa is currently undergoing major re-organisation at management and investment level that started in December 2010. The year 2010 had its own challenges that had slowed down overall activity at the company. The Board of Directors noticed the missing link and decided to overhaul senior management at the plant that resulted into the appointment of a robust textile technologist as General Manager to oversee the plant’s activities. In addition at the Board level, there has been an appointment of a Resident Company Secretary, Mr. Athanase Rutabingwa and Mr. Suresh Chandwani has joined the group as the Director Operations to enhance the oversight function of the Board. QN: In the area of investment what is new in your plant? NS: Since December 2010 shareholders have injected US $ 1.35m working capital into the company in the region with the view of stabilising the raw material cycle that had been affected by the past challenges, in addition to clear trade liabilities. In terms of technical capacity improvement, the company has now sourced state of the art fabric dyeing machinery with the view to improve the dyeing and printing quality of the plant. This will go along way in resolving dyeing and printing challenges so that Utexrwa printing capacity is shoulder to shoulder with the best of the best in the world.In addition the new technology will enable the plant reduce costs of power and water over and above increasing dying and printing capacity? QN: In the first quarter of this year, there were industrial relations challenges in your company. How far have you resolved the matter? ANS: Correct, we had challenges but the company has since managed to sign a comprehensive terms and conditions of services agreement with the unions that organise workers at Utexrwa with the assistance from the ministry of labour. I can confirm that the industrial relations challenges, have been resolved and our workforce is now committed to their work which has improved our capacity to deliver on our commitments. QN: Do you still supply Uniforms to Rwanda Defence Forces and Police forces? ANS: Utexrwa still supplies uniform to both Army and the Police for which we are eternally grateful since this remains the lifeline for the company. In addition both institutions have been very supportive of Utexrwa even when there used to be challenges on delivery. The company has since addressed most of the challenges relating to the uniform supplies to both the Army and Police. QN: what can the Government of Rwanda expect from Utexrwa? ANS: The Board of Directors and Shareholders can confirm to Rwandans that we are committed to reviewing the plant to its rightful position in the Rwandan economy. In this regard the company is working very closely with the government thorough the Ministry of Trade and Industry to further understand the challenges affecting optimal performance of the plant in addition to addressing them in a more holistic manner. There is therefore no doubt that further investment and additional jobs shall be created at Utexrwa within the broader context. QN: What about the general public, anything to expect from Utexrwa? ANS: Yes there is a lot for the general public; the company has revived fully its school uniform manufacturing unit to better serve the entire country, given the free universal primary education programme already in place. Furthermore, the plant is evolving and soon rolling out a distributorship infrastructure for her products across Rwanda where local businessmen and women will be the backbone for this platform. QN: What’s your last message to the Government of Rwanda? ANS: Utexrwa is fully committed to turn around the plant. In doing so, government’s assistance and support is critical in the areas of institutional business to the plant so as to sustain 400 jobs dependent on these supplies in addition to addressing the cost of doing business. The most gratifying development is that, every government department or ministry that we have contacted has been more than helpful and very timely in responding to any issues raised. This we should be in position to revive the plant with minimal difficulty. Ends