An overview of Salala rubber plantation - an 8,000 ha concession of which 4,445 ha are cultivated. Image by Ashoka Mukpo/Mongabay.Liberian Observer | Sep 10, 2024
Salala Rubber Corporation to Resume Operations Soon
—New management says
By Robin Dopoe
Jeety Rubber LLC, a subsidiary of the Jeety Conglomerate, has announced the imminent reopening of the Salala Rubber Corporation (SRC), along with its affiliated schools and clinics.
The disclosure by Jeety Rubber comes weeks after its founder, business tycoon Upjit Singh Sachdeva, acquired SRC from its parent company, Socfin, a Belgian-French agricultural conglomerate. Socfin cited years of financial losses and violent workers’ protests in mid-June over housing conditions, medical care for work-related injuries, and other demands as key reasons for its decision to divest its SRC operations.
The reopening of SRC, according to Sachdeva, is in the advanced stages, and operations will commence soon, although no specific date was disclosed.
“In the soonest possible time, Salala Rubber Corporation will return to business, create jobs, and continue to provide critical social services,” said Sachdeva (Jeety) during a tour of the company with the people of Weala, Margibi County, on September 7.
SRC, Liberia’s fourth-largest rubber-producing and processing company, has been a major player in the Liberian economy, employing over 800 workers, the majority of whom are tappers. Its shutdown in June led to the layoff of the entire workforce — many of whom are from local communities.
SRC’s troubles with its workers occurred on June 27 amid a campaign by the workers’ union to obtain a collective bargaining agreement that would guarantee better housing conditions, medical care for work-related injuries, a reduction in harvesting quotas, and other improvements.
The company management agreed to address some of the union’s demands but said they would not pay the workers for the days they spent on strike. This refusal spurred some rubber tappers to ransack the company headquarters, which were set on fire along with the private residence of the plantation’s manager, who was briefly detained by workers before being freed by company security.
However, SRC’s acquisition by Jeety Rubber LLC is expected to maintain its status as a major player in the Liberian economy, saving the more than 800 jobs that were lost — as the company requires a strong workforce to operate its 4,400-hectare rubber plantation.
In addition to the factory’s reopening, Sachdeva made it clear that SRC’s associated institutions, such as its schools and clinics, will also resume operations as soon as possible. The schools and clinics, which provided education to the children of SRC workers and offered essential healthcare services to employees and local residents alike, respectively, have been closed since the June protest. The closure had left many families without access to these vital services, deepening the impact of the company’s dormancy.
“Your patience and resilience have not gone unnoticed,” Sachdeva told the workers during his address. “We are on the path to recovery, and soon, you will see SRC standing strong once again.”
The company, which was formed in July 2007 through the merger of a stand-alone rubber processing factory (Weala Rubber Company) and a stand-alone rubber plantation (formerly Salala Rubber Corporation), has been accused for years by its workers, Green Advocates, and other international rights groups of poor working conditions and causing significant harm to local communities, including land grabbing, environmental degradation, and human rights abuses.
In a release announcing its sale, Socfinaf S.A. noted that “despite this divestment, the Socfin Group shall remain fully committed to implementing SRC’s 2023 Action Plan based on the findings of the Earthworm Foundation's on-site investigation.”
“This includes resolving land compensation issues and access to sacred sites,” Socfinaf S.A. said in a press release issued from its headquarters in Luxembourg on August 27. “The new shareholder recognizes the importance of the Action Plan for the local communities and is supportive of its implementation.”
Jeety Rubber LLC, which is also based in Weala, the same as SRC, buys and processes rubber into finished and semi-finished products, including TSR 10, for shipment. The company has struggled lately to source enough latex cup lumps to operate its factory at full capacity. The company requires a minimum of 225 tons of latex (cup lumps) daily and 6,750 tons monthly to run the factory 24 hours a day.
“This purchase of SRC, a concessionaire, moves Jeety Rubber from the category of processor into the category of both processor and concessionaire, thereby giving it immense leverage to achieve its goal of producing Made in Liberia rubber products, including latex gloves and tires, in the short and long term,” the company said.
Jeety Rubber LLC, a subsidiary of the Jeety Conglomerate, has announced the imminent reopening of the Salala Rubber Corporation (SRC), along with its affiliated schools and clinics.
The disclosure by Jeety Rubber comes weeks after its founder, business tycoon Upjit Singh Sachdeva, acquired SRC from its parent company, Socfin, a Belgian-French agricultural conglomerate. Socfin cited years of financial losses and violent workers’ protests in mid-June over housing conditions, medical care for work-related injuries, and other demands as key reasons for its decision to divest its SRC operations.
The reopening of SRC, according to Sachdeva, is in the advanced stages, and operations will commence soon, although no specific date was disclosed.
“In the soonest possible time, Salala Rubber Corporation will return to business, create jobs, and continue to provide critical social services,” said Sachdeva (Jeety) during a tour of the company with the people of Weala, Margibi County, on September 7.
SRC, Liberia’s fourth-largest rubber-producing and processing company, has been a major player in the Liberian economy, employing over 800 workers, the majority of whom are tappers. Its shutdown in June led to the layoff of the entire workforce — many of whom are from local communities.
SRC’s troubles with its workers occurred on June 27 amid a campaign by the workers’ union to obtain a collective bargaining agreement that would guarantee better housing conditions, medical care for work-related injuries, a reduction in harvesting quotas, and other improvements.
The company management agreed to address some of the union’s demands but said they would not pay the workers for the days they spent on strike. This refusal spurred some rubber tappers to ransack the company headquarters, which were set on fire along with the private residence of the plantation’s manager, who was briefly detained by workers before being freed by company security.
However, SRC’s acquisition by Jeety Rubber LLC is expected to maintain its status as a major player in the Liberian economy, saving the more than 800 jobs that were lost — as the company requires a strong workforce to operate its 4,400-hectare rubber plantation.
In addition to the factory’s reopening, Sachdeva made it clear that SRC’s associated institutions, such as its schools and clinics, will also resume operations as soon as possible. The schools and clinics, which provided education to the children of SRC workers and offered essential healthcare services to employees and local residents alike, respectively, have been closed since the June protest. The closure had left many families without access to these vital services, deepening the impact of the company’s dormancy.
“Your patience and resilience have not gone unnoticed,” Sachdeva told the workers during his address. “We are on the path to recovery, and soon, you will see SRC standing strong once again.”
The company, which was formed in July 2007 through the merger of a stand-alone rubber processing factory (Weala Rubber Company) and a stand-alone rubber plantation (formerly Salala Rubber Corporation), has been accused for years by its workers, Green Advocates, and other international rights groups of poor working conditions and causing significant harm to local communities, including land grabbing, environmental degradation, and human rights abuses.
In a release announcing its sale, Socfinaf S.A. noted that “despite this divestment, the Socfin Group shall remain fully committed to implementing SRC’s 2023 Action Plan based on the findings of the Earthworm Foundation's on-site investigation.”
“This includes resolving land compensation issues and access to sacred sites,” Socfinaf S.A. said in a press release issued from its headquarters in Luxembourg on August 27. “The new shareholder recognizes the importance of the Action Plan for the local communities and is supportive of its implementation.”
Jeety Rubber LLC, which is also based in Weala, the same as SRC, buys and processes rubber into finished and semi-finished products, including TSR 10, for shipment. The company has struggled lately to source enough latex cup lumps to operate its factory at full capacity. The company requires a minimum of 225 tons of latex (cup lumps) daily and 6,750 tons monthly to run the factory 24 hours a day.
“This purchase of SRC, a concessionaire, moves Jeety Rubber from the category of processor into the category of both processor and concessionaire, thereby giving it immense leverage to achieve its goal of producing Made in Liberia rubber products, including latex gloves and tires, in the short and long term,” the company said.
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The New Dawn | September 10, 2024
-promises improved conditions for workers, residents
Following the recent takeover of Salala Rubber Corporation in Weala, Margibi County, Indian businessman and philanthropist Upjit Singh Sachdeva assures workers and residents that the plantation is in better condition.
By Ramsey N. Singbeh, Jr., in Margibi
Margibi, Liberia, September 10, 2024—Mr. Upjit Singh Schadeva, aka Mr. Jetty, the owner of Jetty Rubber LLC in Weala, Margibi County, assures former workers and residents of the Salala Rubber Corporation that normal operational activities will resume in the plantation very soon.
While touring for the first time within the plantation, he assured the audience that he would announce his ownership of the Salala Rubber Corporation after purchasing the investment recently.
Mr. Jetty, who was accompanied by several top Indian investors and Diplomats both from Liberia and Sierra Leone, distributed cooked and uncooked rice along with cash to all of the camps in the plantation that he toured on Saturday, September 7, 2024.
The beneficiaries received between six 25 kg bags of rice and LRD10,000 to thirty 25 kg bags of rice and LRD30,000 with hot meals distributed to residents in the camps. He admonished them to ensure that every resident of the camp benefits from the donation.
Presenting his entourage to citizens, he introduced Mr. Jay Khanija, Managing Director of Sethi Brothers Inc.; Baisnab Charan Pradhan, Indian Ambassador to Sierra Leone; Jaspal Singh, proprietor of Supreme Liberia Inc.; Ajith Kumar, the current General Manager of the Salala Rubber Corporation; and Moses Darmo, CEO of MOABEL Enterprise Inc.
Also in attendance were Roland Sackie Johnson, the former Commissioner of Cinta Township, women, youth, elders, and some residents of Weala, as well as workers of SRC and Jetty Rubber LLC.
“My name is Mr. Jetty. I have come to identify with you and inform you by the grace of Almighty God, our creator, and with his blessings, we are the owner of Salala Rubber Plantation now. I have come to identify with all of you and my family and to let you know that very soon we will start the plantation,” Mr. Jeety noted in the SRC Camp #:1.
He emphasized that business would not be as usual, as changes would be made for the betterment of the plantation and its workers.
He noted that this is the first time since SRC was established in 1959 that somebody from Weala in Liberia will own the company.
“I want to emphasize (that) I’m a Liberian by heart. I don’t have to be Liberian by passport.
I’m sure you know for the past three years, I’m operating Jetty Rubber. When I heard the plantation had been closed and the jobs had been laid off, I intervened to see how best I could take it over and run this plantation to bring back all the jobs for the people of Liberia and bring relief to the people of Salala Rubber.”
He also assured both residents and workers that the company’s current general manager, Mr. Ajith Kumar, would join his new team.
On the question of the school’s fate in the plantation, he said the new management is discussing with Mr. Kumar to work out modalities for ensuring that the SRC School system is reopened for this academic year.
He promised that he would be seen quite often on the plantation because he loves to interact with his people, who work for him to understand their problems.
According to Mr. Jetty, the feeding program that started about two months ago on the plantation will continue, adding that it will not stop because he has taken over.
He informed them that though there are problems, it will take time to solve them, as he will not perform miracles.
He maintained that he counted on their full support for the success of the plantation.
The former Management of the Salala Rubber Corporation shut down indefinitely in June following violence by aggrieved workers, predominantly tappers, that led to looting and burning down of the residence and vehicle of Plantation Manager Sangeeth Sathyan.
The protesting workers had demanded improved working conditions and five months’ salary arrears, among others. The company’s total workforce is estimated at 800 people, who have been jobless since the violence that destroyed the company’s assets amid the threat of life.
On the morning hours of Thursday, June 27, 2024, workers of SRC, including contractors and employees, predominantly tappers, entered the factory, set the administrative offices on fire, broke into a warehouse, and looted bags of rice as they set ablaze residence of the plantation manager, Sangeeth Sathyan and his assigned vehicle while holding general manager Ajith Kumar, hostage.
As a result of the violence, the SRC Management shut down indefinitely on Saturday, June 29, 2024, halting all operations.
A copy of the shutdown notice obtained by the NEW DAWN addressed to employees with copies to the Ministries of Justice, Agriculture Labour, and the General Agriculture and Allied Workers Union of Liberia or GAAWUL, the management said its operation is closed until otherwise decided.
The notice from SRC Management reads: “In the wake of the recent illegal and violent strike action carried out by employees, in particular, on Thursday, June 27, 2024, which led to the manhandling of senior personnel and staff, especially the general manager and one of the company’s plantation superintendents, issuing of death threats as well as wanton destruction of company’s properties by burning of senior staff residential unit(s), the plantation manager’s vehicle, smashing offices, setting fire to offices, and looting, etc., Management hereby informs that the operation of the company is closed with immediate effect until otherwise decided. Meanwhile, Management informs all employees that the company shall pay appropriate end-of-service compensation in keeping with applicable laws.”
However, Mr. Jeety intervened and subsequently bought the company to resume full operation.
Editing by Jonathan Browne
