Layoffs, workplace harassment follow deadly explosion at Oba pasta factory

Following a deadly explosion at the Oba Makarna pasta factory in Sakarya on Sep 15, which claimed five lives, the company has started laying off workers.

Layoffs began last week with the cleaning staff and have now extended to the quality control department. According to a supervisor, all employees in the department except three will be dismissed.

In a message sent via WhatsApp, workers were informed that they would first be required to take their annual leave, after which they would be officially let go, a step apparently taken to avoid paying employees compensation for their unused leaves.

Before the explosion, the quality control department comprised 10 employees, one of whom died in the blast, a source from the company told bianet. Six workers were informed that they would be dismissed, leaving only three in the department. However, the source added that the workers have not yet received any formal written notification.

The source also mentioned that factory managers promised severance payments, but there has been no clarity on when or how these will be paid. “Quality control might seem like a secondary role, but it’s a crucial part of the factory’s operations. These layoffs are unlikely to be limited to cleaning and quality control; they will probably spread to other departments. Many workers have already been forced to take their annual leave, and it seems the managers don’t intend to bring them back after that.”

Pressure on workers

The same source also spoke about the pressure workers are facing inside the factory, alleging instances of workplace harassment.

“Workers have lost colleagues. So far, five have died. Those who attended the funerals were told that the time would be deducted from their annual leave or considered unpaid leave,” they said. “Oba Makarna’s managers even counted a one-hour funeral service as a full day of missed work. All these workers wanted to do was pay their final respects to their friends.”

The source also claimed that the company’s chair, Mehmet Musa Özgüçlü, has been creating additional pressure. “He walks around the factory, making statements to the workers, as if the explosion was somehow their fault. Meanwhile, the human resources department is reportedly checking employees’ records to see if they are unionized.”

Financial background and ownership

Oba Makarna, one of Turkey’s largest pasta producers, was founded in 1966 in Antep. The company was acquired by the Özgüçlü family in 2005 and now operates two facilities, one in Antep and the other in Sakarya’s Hendek district, which they purchased in 2017. The company exports to over 100 countries.

As for the ownership of the company, 56.94% is owned by Alpinvest, a company controlled by the Özgüçlü family, while 22.97% is held by Turkey Pasta Holding Ltd, owned by Bahrain-based Sayacorp and Venture Capital Bank. In February, 20.09% of the company was listed on the stock market.

The company produces 25% of all pasta in Turkey, holding an 18% market share domestically and a 7.4% share in global pasta trade. In early 2024, two new production lines were installed at the Hendek factory, increasing its capacity from 506,000 to 585,000 tons annually.

As of September 2023, Oba Makarna employed 1,262 people. Following the explosion, seven individuals, including factory managers and owners, were taken into custody. Only the factory manager, identified as U.V., remains under arrest.

Production has since been outsourced to five different facilities in Turkey and Egypt. The company reported a net profit of 350.6 million Turkish liras (~12.5 million US dollars) in the first half of 2024, with a monthly profit of 49,000 liras (~1,750 dollars) per worker. The company has also filed an insurance claim for the financial losses caused by the explosion. (HA/VK)