Cash-strapped retailer Tuskys Supermarket has sent home hundreds of staffers as it struggles to stay afloat.
The supermarket chain says the fresh layoffs are part of its business operation realignements.
In a letter addressed to the affected staffers, Tuskys Human Resources General Manager Francis Kimani said the company will offer them payment inline with labour laws including accrued leave days and severance pay.
However, the terminal dues, the employer said, will be paid out n February 13, 2021.
“Due to the ongoing business realignments, Tusker Mattresses Limited hereby informs you that it will no longer continue to offer you employment and will terminate your employment contract with effect from September 22,” the letter reads in part.
Read: Tuskys Chief Financial Officer Daniel Ndiragu Leaves Amid Financial Woes
Inside sources intimated to a local media that the fresh layoffs are targeted at unionised workers who took the retailer to court over a salary deduction dispute.
The retailer had sought to slash the employees’ pay by between 20 and 30 per cent through the reduction of work hours from 45 in a week to 36.
The redunduncies come months after the retailer sent home a number of its employees in March this year.
The decision was informed by a drop in sales and the number of customers despite the rapid growth of the retail sector, a letter dated February 18 explains.
Read Also: Siblings Rivalry Escalates In Planned Tuskys Stake Sale
Tuskys is undergoing a financial crunch with auctioners in various parts of the country threatening to auction the retailer’s property over unpaid rent.
The management is looking to sell a majority stake to raise capital and funds to pay suppliers.
Last Friday, the management announced the receipt of a partly Ksh500 million from its recently announced Ksh2 billion loan facility from a Mauritius based private fund. The retailer hopes to use the money to stabilize its business.
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