Fernandes Guyana Enterprise has told employees that it will be discontinuing its bakery operations “Demerara Bakery Inc.”, effective November 30, 2024, citing rising operational costs and an ongoing labour shortage as key factors in the decision.
The company made the announcement in a formal notification letter sent to employees dated October 31st, including a redundancy notice to staff members impacted by the closure. According to the letter, the decision follows the increasing challenges posed by escalating costs of materials, resources, and labour, which have rendered it unfeasible to continue bakery operations.
“The rising costs of resources, materials, labor, and operations, compounded by the continuous labor shortage, have made it impossible for the Company to maintain its bakery operations,” the company explained in the letter.
As a result, employees affected by the closure will receive redundancy pay in accordance with statutory requirements. The payments will include a month’s salary in lieu of notice, accrued leave days, and a redundancy allowance based on years of service. The redundancy payments will be made in installments, with the residual balance to be paid within seven working days following the official closure. The company’s management also expressed a commitment to supporting affected employees in finding new employment opportunities, offering to assist in the transition process through its Human Resources department.
The firm has reassured staff that it is committed to providing adequate compensation during this difficult time, acknowledging the long-standing service and dedication of its employees.
“Fernandes Guyana Enterprise sincerely thanks all affected employees for their hard work and loyalty,” the letter concluded. “We wish you all the best in your future endeavors.”
Employees who are impacted by the redundancy have been instructed to acknowledge the receipt of their notification letter by signing and returning a copy to the Human Resource Manager.
The business was rebranded Demerara Bakery in 2018.
