Despite The Recession, MTN Sacks 280 workers
As if the current recession is not enough, Many Nigerian families might experience additional suffering as MTN, a telecommunication Company sacks 280 of its workforce.
The Telecommunication giant was fined heavily last year by the Nigerian government for failing to disconnect 5.2 million unregistered subscribers.
According to the company source, the company wants to do a job cut of about 25% of its staff.
Some 200 permanent employees and about 80 contract staffs across various cadres were affected in the move.
The source explains that many of the staff the cut affects are, ranging from graduates to senior managers, who have spent up to 15years with MTN, this action was taken as a result of “the changing dynamics of the telecoms industry in recent times” and the company wants to bring in new ideas to the telecom work.
Meanwhile, the Source added that the affected workers were compensated with 75% of their gross monthly income multiplied by the number of years with the company. “Given that the company is about 16 years old in Nigeria, the severance package brought pain and discontent among the affected staff. With the payoff structure, senior managers with 15 years of service were left with about N15 million; most of the staff got less than N5 million,” company.
Another source familiar with the latest retrench said 200 of those affected had earlier agreed to leave the company voluntarily and that the company introduced the voluntary severance scheme (VSS), to provide a window for one week in April, for persons who have served in MTN for five years and above to take up.
Source however explained that all 280 who participated under the VSS were disengage later and were paid the equivalent sum up amount of their three weeks salary for every year they worked with MTN. “what it means is that if one worked in MTN for five years, one would be paid three weeks of their gross salaries times five,” source added.
Funsho Aina, the MTN spokesperson of MTN said “Our people are our greatest asset, each individual’s knowledge, experience and ideas contribute to our continued growth and improvement. As such, ensuring a healthy and highly motivated workforce is a priority for us.
“It is with this in mind that MTN Nigeria has implemented a Voluntary Severance Scheme designed to balance individual employee needs with business exigencies. The program was designed drawing on feedback from employees and following consultation with elected employee representatives.
He noted that “It provides a financial incentive and opportunity for employees who have worked with MTN for over five years to pursue other career interests and personal ambitions full-time while increasing opportunities for professionals with a fresh perspective wishing to join the MTN family,”
He said the successful conclusion of the VSS scheme enabled us to tailor the experience base of its workforce to technology shifts and the business future needs.
Aina stressed that the management of MTN appreciates the every quota of former colleagues and wishes them well in their future endeavors and added that the company focus at this time is securing the well-being of employees as we work together to forge the future, and deliver exceptional quality to our customers.