Kessem sugar factory faces backlash over mass layoffs amid earthquake fallout in Afar region 

ETHIOPIA – Kessem Sugar Factory’s management has issued a preliminary warning of impending layoffs affecting over 1,100 employees, sparking outrage among workers already grappling with displacement from recent earthquakes in Ethiopia’s Afar region.  

The factory, located in Dulesa district, announced on February 18, 2025, that “significant damage to the factory’s property caused by repeated earthquakes” and a “complete suspension of operations” necessitated the termination of employment contracts.  

The decision, initially set to take effect immediately, was revised to provide notice periods ranging from one to three months, depending on employees’ tenure. 

A factory worker explained the tiered timeline: those with less than five years of service receive one month’s notice, those with five to ten years get two months, and workers with over ten years are granted three months.  

However, the decision has drawn sharp criticism from employees, who called it “ill-timed and inconsiderate.” Many remain in temporary shelters following seismic disruptions, unprepared for such a blow.  

“I head a family with three children,” one worker told Addis Standard. “Our focus is on the earthquake, not expecting this sudden move.” He added that management should have accounted for their dire circumstances rather than opting for abrupt terminations. 

The earthquakes have inflicted “moderate to severe” damage on the factory, according to General Manager Ali Hussein.  

The power distribution building collapsed, sugarcane fields cracked, and warehouses and residential areas sustained harm, halting production. Reports confirm the Afar region’s recent seismic activity has displaced thousands, intensifying workers’ struggles. 

Getahun Arsiicho, chairman of the Kessem Sugar Factory Workers’ Union, condemned the layoffs as “unjustified,” highlighting viable alternatives.  

With 20,000 hectares of land, ample water from the Kessem Dam, and a favorable climate, he argued that workers could have shifted to short-term cash crop farming to sustain themselves until operations resumed.  

“At the very least, management should have explored options,” he stressed. 

The revised notice, posted on the factory’s announcement board and reviewed by Addis Standard, has done little to ease “deep concerns” among employees.  

For many, the decision compounds existing hardships, leaving them uncertain about their future amid ongoing recovery efforts in the quake-hit region.  

The fallout has ignited protests, with workers demanding reconsideration from a management they feel has overlooked their plight. 

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