Tile & Carpet Center Limited (T&C Kenya) is set to declare a section of employees redundant at the Athi River Production Department due to harsh economic conditions, occasioned by a “decline in production demand and economic challenges.” The company has demanded the decision, citing its need to maintain long-term viability.
“Due to a decline in production demand, economic challenges, and strategic realignment, it has become necessary to downsize operations at our production plant to maintain the company’s long-term viability,” Mandeep Degon, Head of Human Resources, said.
The internal memo served to employees dated November 6th, 2024 will be effective December 6th, 2024, one month from the date indicated. T&C Kenya asserted that the decision was arrived at after carrying out analysis and considering various operational factors.
“As a result of this restructuring, some positions have been identified for redundancy. This decision was not taken lightly and is the outcome of careful analysis and consideration of various operational factors,” the company added.
The affected staff will benefit from the “redundancy package as per the Employment Act 2007 and the Collective Bargaining Agreement (CBA),“ the caompany added.
The redundancy package shall include Notice Pay, Severance Pay, Accrued Leave Pay, and a Certificate of Service & Referral Letter. This shall be a take-on between T&C Kenya and the Union representing the laid-off staff.
Since the beginning of 2024, more companies and businesses are either closing down completely or downsizing the workforce to meet the declining demand.
The painful decisions, which have since affected employees across different sectors, are occasioned by the tough economic condition, particularly the high taxation, despite operational costs remaining high with little or no output.
