Tuskys to off-load more staff following reduction in revenue
By Lewis Njoka, July 27, 2020
RETAIL: Tuskys Supermarkets is proposing to send an unknown number of its estimated 6,000 workforce on unpaid leave citing cash flow challenges emanating from reduced business.
Speaking during negotiations with the Kenya Union of Commercial Food and Allied Workers (KUCFAW) and Tuskys management team led by the Human Resources General Manager, Francis Kimani said the retailer would even go for redundancies if the business situation worsens.
Redundacies
“Management, therefore, in its efforts to also save the jobs requested the union to allow some of its members to be sent on unpaid leave.
Tusker Mattresses Limited (TML) further explained that if the situation worsened, the option of redundancy will also be tabled,” read the July 23 meeting minutes.
The retail chain says it will be seeking to slash its wage bill to withstand shocks including sending part of its staff on unpaid leave and the last resort will be layoffs.
This comes only a few months after the retailer declared 80 employees redundant when it shut down four outlets in Mombasa, Nairobi and Kitale and effected a 20 per cent pay cut which was later reversed by the courts.
Tuskys said sales had declined by 62 per cent and had lost over Sh100 million adding it was unsure of its ability to pay the July salaries.
“TML continued to state that it will be a miracle if the salaries July 2020 are paid.
TML went further ahead to demonstrate how sales have continued to go down with a decline of 62 per cent and losses running over Sh100 million,” read the minutes in part.
Kimani said the cash flow challenges are the reason the retailer is yet to implement court orders which required employees be paid deductions made in contested pay cuts as well as the May salaries for the 80 employees declared redundant.
KUCFAW further requested Tuskys to do away with outsourced workers before sending employees on unpaid leave or redundancy saying its members comprised only a small portion of the retailer’s workforce.