Corporate News
Ericsson Kenya country manager Robert Rudin. PHOTO | FILE
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
Global electronics giant Ericsson has begun laying
off some of its Kenyan staff in a retrenchment that has seen 139
employees move to court for fear of being sacked.
The electronics manufacturer has already sent retrenchment
notices to 10 employees who have been informed that their termination
begins on July 31.
Affected employees may still be required to work between August 1 and 31, which will be regarded as the notification period.
Ericsson is yet to reveal how many employees will
be affected, a situation that has seen 139 employees sue it to compel
the electronics giant to furnish all workers with details of severance
pay for those to be sent home.
“We have investigated possible alternatives to your
potential retrenchment. Unfortunately to date we have been unable to
secure any appropriate alternative position for you. In the
circumstances, this is to inform you that we have no alternative but to
terminate your services due to operational requirements. The termination
shall take effect on July 31, 2016,” says a letter to one of the
employees.
Employees who have already received their
termination notices have, however, been asked to discuss with their line
managers on when they will last be required to physically report to
work.
Those who will work beyond July 31 will, however, not be listed in the firm’s medical scheme.
Those who work during the termination notice will
be paid, but Ericsson’s contribution to their retirement dues will cease
on July 31.
An internal newsflash dated May 27 sent by the
firm’s head of human resources for sub-Saharan Africa Blair Mackenzie
announced a “right-sizing” initiative within the sub-Saharan Africa.
In their suit against Ericsson, the employees are
seeking details on any benefits payable to those who will survive, the
voluntary and forced retrenchments, and for what period will they
continue to work for the firm.
They further seek to know the statutory actions and
steps taken to effect the said voluntary and forced retrenchments,
including notices and correspondences to the relevant authorities and
targeted employees.
The employees have also queried Ericsson’s
retention of foreign workers who provide services that could be offered
by locals who are facing retrenchment.
Director of Immigration Gordon Kilahangwa has been
dragged into the dispute, following a demand that he provide information
on whether Ericsson’s foreign employees are working in the country
legally and whether their permits state specialisation details.
Through lawyer Apollo Mboya, a section of Ericsson
employees want the Immigration boss to provide information on the
foreign workers so that they can determine whether the electronics giant
has violated locals’ labour rights.
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