Standard Group has declared 170 employees redundant across all departments in a new restructuring move.
Through a notice dated March 18, 2020, by the Company CEO Orlando Lyomu, a one month notice has been issued effective today, with the redundancy expected to take place in phases.
“The Company, therefore, gives a one (1) months’ notice of its intention to declare redundancy with effect from the date hereof. The redundancy will be undertaken in phase,” reads the notice in part.
The company cites that the declaration of redundancy has been necessitated by various factors including the need to realign the organization structure to be better equipped to deal with emerging business challenges brought about by regulatory changes and difficult business environments.
Other factors cited are the shifting trends in media consumption due to technology changes and other efficiencies arising from automation of key internal processes.
According to the notice, the selection criteria will be made fair and in compliance with the provisions of the Employment Act 2007, the Labour Relations Act and current CBA, with the affected employees expected to be duly informed in writing and offered private counselling sessions.
“All employees who will be declared redundant will be paid as follows: a) Payment for days worked until the exit date. b) Severance pay of 15 days or days indicated in CBA for union workers; for every completed year of service. c) Notice pay as per contract of employment. cl) Payment of leave days accrued and not taken at the time of exit. e) Pension dues in line with the Scheme rules,” it reads further.
In December last year, there were reports of mass firing by the Standard Group’s KTN forcing employees to live on the edge.
Although it wasn’t clear on the exact number of people who were to lose their jobs, it was established that the company was repositioning itself hence wanted to shed off the redundant workforce.
Since the year began, Kenyans have been rendered jobless due to companies declaring redundancy, with the new Coronavirus pandemic making things even worse.