Corporate News
Ericsson Kenya country manager Robert Rudin. PHOTO | FILE
By BRIAN WASUNA
In Summary
Over 100 Ericsson Kenya employees want the High Court
to jail the electronics giant’s country manager and human resource
manager for retrenching staff despite the existence of an order against
the move.
The employees have got a greenlight from employment and
labour relations judge Monica Mbaru to file contempt of court
proceedings against country manager Robert Rudin and human resource
manager Margaret Mutisya for issuing termination letters to 10
employees.
The 139 employees on June 7 obtained a court order
barring Ericsson from implementing the sack before the firm has revealed
the severance package it will offer to affected staff.
Justice Mbaru has further suspended the redundancy
letters issued to 10 employees last week until the application for
contempt of court has been heard.
“It is hereby ordered that in the interim Ericsson
Kenya restores all the access rights to tools of work withdrawn. The
leave to institute contempt proceedings acts as a permanent injunction
only in terms of stoppage of the redundancy notices now issued to any
employee and any claimant herein pending hearing of the claimants’
application,” ordered Justice Mbaru.
Mr Apollo Mboya who is the lawyer for the 139
employees wants the court to compel Ericsson to reveal how many staff
will be affected by the retrenchment and the figure that will appear on
their severance cheques before the process is implemented.
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 report to work.
Those who will work beyond July 31 will not be
listed in the firm’s staff 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 sub-Saharan Africa.
The electronics firm says the layoffs are in line with the company’s target to hit Sh106 billion profit globally.
“Ericsson announced a global cost and efficiency
programm in 2014... This programme is on track but more remains to be
done... As announced on April 21, we are implementing structural changes
to further accelerate strategy execution and drive efficiency and
growth even harder across the company,” said Mr Rudin.
The employees want 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 allegedly
be offered by locals who are facing retrenchment.
Justice Mbaru last week ordered Ericsson to respond to the contempt of court application by August 18.
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