Tyre manufacturer Sameer Africa has struggled to compete against cheap imprts from China and has now declared 73 staff working in that department redundant.
“We wish to confirm that despite implementation of several changes in our business operations and strategy, business has not improved, and survival of the Company is and remains a major challenge…It is therefore contemplated that approximately seventy three (73) exployees drawn from both management and unionusable cadres will have their employment contacts terminated on account of redundancy”, the notice stated in parts.
Last year in August, Sameer fired its CEO Simon Ngigi who was appointed from Longhorn Publishers touted as the guy who will change the fortunes of the firm.
Despite changing its strategy in 2016 when it stopped local manufacturing of its key tyre brand Yana and opted to outsource to Asia, Sameer Africa has still struggled to stick its head above the water.
The company continued to record a declining performance despite reducing its overhead cost.
Below is the full notice
Reference is drawn to our redundancy notice dated 1st December, 2019.
We wish to confirm that despite implementation of several changes in our business operations and strategy, business has not improved, and survival of the Company is and remains a major challenge.
Arising from the foregoing, the Board of Directors of the Company, at a meeting held on 20th April 2020, resolved to close down the tyre business. The implication of this is that a number of positions/roles
within the Company particularly roles that are currently undertaken by employees who are engaged at the affected locations, will become redundant. It is therefore contemplated that approximately seventy three (73) exployees drawn from both management and unionusable cadres will have their employment contacts terminated on account of redundancy.
Based on the above reasons and pursuant to Section 40 (1) (8) of the Employment Act, 2007 of the Laws of Kenya, the Company hereby issues the necessary statutory notice to declare the affected
enaployees redundant effective 31st May, 2020.
We confirm that the Company will observe the necessary legal requirements including payment of severance to all those affected.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]