CMC Motors on 24th April announced that it would declare 169 employees redundant thereby laying them off. This comes in the wake of the company restructuring and declaring that it would focus on agricultural mechanization as it seeks to align with the Government’s agenda to transform and rapidly grow Kenya’s agricultural sector.
In a letter to the Secretary General of the Amalgamated Union of Kenya Metal Workers, CMC Motors stated that the reorganization would result in a reduction of roles and resources required to execute the remaining functions, and as such, the redundancy was necessary.
Roles Declared Redundant by CMC Motors
The redundancy is set to affect employees in both management and unionisable categories. Further, it added that the employees who would be most affected would be those in the Finance, IT, Legal, Logistics, Administration & Support, Senior management, Parts, Procurement, Projects, Sales, and Services.
The Company also stated that the redundancy was issued in accordance with Section 40 of the Employment Act and that the affected employees would be paid their terminal dues in accordance with their contracts of employment and as guided by the existing Collective Bargain Agreement (CBA).
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