Downsizing is for profitability in two years - Vodafone
Accra, Aug. 5, Ghanadot/GNA – The
management of Vodafone Ghana has said that the redundancy
programme it has embarked upon is ultimately intended to put
the company on top of competition and make it productive and
profitable in two years.
In a Question and Answer Sheet designed to explain to
workers why the downsizing was necessary, the management
said, “We have a two-year target to turn the business around
and make it productive and profitable.”
Last year, the company reported a loss of 264 million Ghana
Cedis.
Management said reducing the numbers was in a bid to adopt a
new structure that would make the company work better,
adding “it is also one of the things we need to do to be on
top of the competition”.
They said the sale of Ghana Telecom (GT) to Vodafone was not
a trick to lay off workers, but that it was necessary to
make the company operate in a cost effective and efficient
manner.
Management noted that generally the way Ghana Telecom worked
was being completely reviewed to align the structures,
processes, procedures and systems with best practices, and
that employees would be trained to work the “Vodafone Way”.
Till date, Vodafone Ghana has laid off a total of 942
employees through voluntary redundancy which formed part of
an ongoing comprehensive restructuring and business
transformation process in the company, and is also likely to
lead to the closure of some non-core units.
Management of the company recently announced that an
additional 950 workers would be laid off compulsorily
between now and November 30, 2009 and be paid a severance
award of three months’ salary for every year of service,
plus entrepreneurship training and counselling on how to
handle life after Vodafone.
They said the downsizing programme was to enable the company
to focus on its core business, automate its process, reduce
duplication and deliver quality service to its customers and
employees.
Management said the affected employees would be informed by
the end of this month, and would be paid their severance
awards, less any debt owed to either the company or any
other institution, by November 30, 2009.
They said those entitled to Provident Fund would also be
given their entitlements and those under Vodafone-sponsored
medical treatment would continue to benefit from the
sponsorship even after they had left.
Management also said employees who were laid off would lose
their mobile phones, laptops, uniforms and ID cards given to
them by the company, adding that their mobile numbers would
also be changed from 020200xxxx to 020300xxxx.
While the company is laying off employees, it has been
recruiting new ones and paying them higher salaries than
their co-equals already in service.
Management said the recruitment programme focused on some
key critical areas to stay competitive, adding that as part
of the company’s transformation, new skills would be needed.
If the compulsory redundancy programme goes through,
Vodafone which is the majority shareholder with 70 per cent,
would have laid off some 1,892 of the 4,000 workers it
inherited from GT.
Meanwhile the government of Ghana, the minority shareholder
with 30 per cent, has not yet made any pronouncement on the
ongoing redundancy programme. It has commissioned a review
of the Vodafone deal, and is awaiting a report before taking
a firm decision on what to do with Vodafone.
Executives of unionized workers of Vodafone, the National
Executive of the Communications Workers Union (CWU), and the
Trades Union Congress slammed the compulsory redundancy
programme when it was unilaterally announced by management
recently.
Management last week violated an internal arrangement under
a Standing Joint Negotiating Committee, which enjoined them
to have consulted union before going public with the
announcement.
GNA
