Mmegi Group restructures
Staff Writer | Friday September 26, 2014 16:04
BusinessWeek: Is it true that the company is retrenching staff?
Mbuya: The company is not retrenching staff. The company is undergoing a restructuring exercise that might result in job losses. In the event there are job losses, in consultation with staff, the company will do everything it can to avoid or avert the magnitude of such an eventuality.
BusinessWeek: Why are you restructuring?
Mbuya: The company is restructuring due to operational requirements as a result of a number of reasons which include depressed trading conditions due to increased competition and impact of the recent economic downturn. The other driving factor is the challenges as well as opportunities that have been presented by technological developments e.g. digital technology, etc. A disproportionate cost structure vis a vis revenue has also motivated the restructuring exercise.
BusinessWeek: How many people are you going to lay-off?
Mbuya: No decision has been taken yet to lay-off people. We are still consulting with staff and together we are exploring alternatives to avert possible job losses.
BusinessWeek: When is the retrenchment of staff likely to take place?
Mbuya: We don’t want to be presumptuous and fix a definitive date of separation because the decision to retrench has not been taken yet. However, the rationalisation exercise is supposed to be completed within the next three months.
BusinessWeek: Is there a provision for people to be redeployed within the company or the Group if they are found to be redundant where they are?
Mbuya: That is provided for in the Employment Act, which is the law that is guiding the company in this process. So, yes, there is a provision for such redeployment of staff should there be openings elsewhere as the company carries out this exercise.
BusinessWeek: What are the retrenchment packages that will be paid to staff?
Mbuya: MIH is a private company. We cannot disclose such privileged information about our staff to a third party.
BusinessWeek: Is there provision for voluntary separation?
Mbuya: Staff who volunteer to leave will be treated as resignations, and they will be compensated accordingly.
BusinessWeek: Have you complied with the Employment Act as you undertake this exercise?
Mbuya: MIH is a law-abiding company in good standing. Everything regarding the restructuring exercise is being done in accordance with Section 25 of the Employment Act.
BusinessWeek: There are staff members who claim that they have not been consulted before the decision to restructure was made. What is your response to that?
Mbuya: Consultation regarding the restructuring exercise has been taking place on an ongoing basis over some time now. The consultation process is still on and all stakeholders are actively involved. If the company decides to lay-off staff that will also be a product of this protracted consultation process. Of course consultation cannot go on forever, at some point it has to be concluded so that decisions can be made and implemented.