COVID-19 CRISIS hits hard; ENHAS and Moneybags Sam Kutesa lay off workers

Foreign Affairs Minister Sam Kutesa; Online Photo

Companies around the world are laying off workers as demand for products and services decline sharply because of the coronavirus pandemic.

The economic effects of coronavirus pandemic in Uganda continue to bite both the rich and the poor as the measures to tame the pandemic hit hard.

In order to mitigate these effects, lay-off of workers are slowly kicking in with the latest being Entebbe Handling Services (ENHAS).

In a letter this website has seen, ENHAS which was formerly owned by Foreign Affairs Minister Sam Kutesa declared all staff redundant effective April 15th.

In December 2019, Mr Sam Kutesa, sold off his shares in Entebbe Handling Services (Enhas) to a group of businessmen from the United Arab Emirates.

According to the General Manager Nouamane Zahouani, it became necessary for the company to reduce its workforce in order to ensure sustainability of the company.

Although the memo does not specify how many people are affected, the company employs about 200 staff, both permanent and part-time.

However, it says that the terminated staff will be given priority for recruitment in the future when the business environment improves.

The memo also indicated that ENHAS will pay all entitlements of its workers including renumeration, allowances, outstanding long-term service award, and shs 1M for transport.

Reports have also indicate that moneybags Kutesa has also laid off workers at his Sembabule-based Mbabule FM. The radio staff that used to be 22, has been slashed to only 7 sending majority of them redundant.

One of the victims of this unprecedented but reasonable decision told sabasaba that management sent 15 of the employees packing, retaining 5 on-air presenters, an accountant, and a security guard.

The source however intimated that the employees had no employment contracts, and some provisions of the employment act were ignored during the process.

It has been reported that the laid off staff are severely distressed, though a window for negotiations to settle the matter has been opened between the General Manager Ms Nakato Viola to settle the matter.

We will keep you updated on the matter.

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