Seprod recalls 141 workers, resumes full production

Three weeks after laying off 141 employees amid inventory backlogs and market pressures, the Seprod Group has recalled all affected workers and resumed full production at its juice and dairy facility.

Chief Executive Officer Richard Pandohie had attributed the layoffs to rising costs for sugar-based juices following the introduction of a new government sugar tax, declining sales amid a sluggish economy, and a significant build-up of inventory and raw materials that had exhausted storage capacity and forced the company to scale down production.

He also cited weaker demand from the local hotel industry following Hurricane Melissa in October last year, along with a slow retail recovery in some of the hardest-hit areas, including Hanover.

Pandohie told The Gleaner on Thursday that an assessment conducted at the end of the three-week period found that while the inventory build-up had been reduced only partially, the company had decided to resume full production and recall all affected employees.

“The initial objective was to reduce the inventory build-up, which was partially achieved. Nonetheless, the decision was made to resume full production. While significant headwinds remain, the entire organisation is working diligently to address these challenges and find sustainable solutions,” Pandohie said.

Following the announcement of the layoffs, Health and Wellness Minister Dr Christopher Tufton invited Pandohie, through social media, to discuss the possible reformulation of the company’s beverages to reduce their sugar content.

Pandohie told The Gleaner that the discussions are expected to take place shortly.

Tufton has been advocating for reduced sugar consumption as part of efforts to tackle lifestyle diseases among Jamaicans.

Finance Minister Fayval Williams announced the new sugar tax measures during her Budget presentation earlier this year.

- Karen Madden

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