MRI cuts staff salaries
Pini Bothoko | Tuesday May 17, 2022 06:00
Employees have criticised the move, while the company states that the decision, which is part of a restructuring exercise, would save employees from retrenchment. Some employees are frustrated as they do not know their fate as the exercise could leave them jobless.
The Monitor is reliably informed that one of the outcomes of the organisation’s structural review resulted in employees’ basic salaries being slashed by almost 40%, something that has affected staff morale as workers are now focusing energies on an unknown future.
Even though MRI has not laid out how many jobs will be possibly cut, employees now fear the organisation’s structural review will likely leave a number of them jobless.
Asked for reasons for the exercise, MRI managing director, Thapelo Lippe said the restructuring was done within the applicable laws of Botswana with extensive consultation and counselling with the employees availed and conducted.
“MRI is currently undergoing an organisational restructuring exercise under Section 25 of the Employment Act of the laws of Botswana. The exercise resulted in the remuneration structure for some of the positions being rationalised to align salaries with the pay market and cost base of the company against revenue generation,” he explained.
Lippe added that while organisational restructuring may result in retrenchments, MRI is in consideration of the current economic climate and hence opted for a measure that averts separation with employees at all costs.
Moreover, he assured its valued clients and the community that MRI undertakes its operations in line with the laws of Botswana.
The MRI move also comes after then Minister of Employment, Labour and Productivity, and Skills Development Ronald Machana Shamukuni (now Minister of Justice) mentioned at the end of March ahead of the April rationalisation that came on the heels of the January Cabinet reshuffle, intimated that more workers were at the risk of losing their jobs due to the current economic climate. At the time Shamukuni stated that several companies were planning to lay off their employees as businesses were struggling to recover from the impact of the COVID-19 pandemic.
Shamukuni also stated then that there were no financial incentives offered to businesses as COVID-19 relief because the economy was unable to sustain such a plan despite pandemic uncertainties.
On a more optimistic note, the then labour minister expressed hope that once the economy recovers, there will be job opportunities.