EPZ firms ordered to keep 7,000 workers on changes
Workers at Ashton Apparel EPZ in Changamwe Mombasa protest over the firm's failure to recognise their union in this photo taken on March 30, 2015. PHOTO | KEVIN ODIT | NMG
The Competition Authority of Kenya (CAK) has moved to forestall the impending layoff of up to 7,019 staff of two EPZ factories in Changamwe, Mombasa, which had issued redundancy notices in September last year following a buyout agreement.
While approving the acquisitions of the firms in a gazette notice on Friday, CAK Acting director-general Adano Roba imposed the retention of the entire workforce as a condition for okaying the sale of assets of Ashton Apparel (EPZ) Limited and those of Mombasa Apparel (EPZ) Limited to Nava Apparels, a subsidiary of Gokaldas Exports Limited.
“It is notified for general information that the Authority has approved the implementation of the proposed mergers on condition that the acquirer retains all the 7,019 employees of the targets on terms that are no less favourable than their current terms of employment subject to individual employees accepting the acquirer’s retention of employment,” said Mr Roba.
Ashton Apparel and Mombasa Apparel, which are said to be owned by a common investor, had in November informed their employees that upon the transfer of the assets and operations, Gokaldas would issue employment contracts to employees based on emerging business requirements.
“Because of this agreement, we are notifying you of the intended non-renewal of your current employment contract with the company beyond the 23rd of December 2023 on grounds of redundancy,” read a letter dated November 22, 2023 addressed to Ashton staff.
A week later, the Ministry of Labour summoned the management of the two EPZ factories to appear before the Mombasa County Labour Officer on December 7 to shed light on the planned mass sackings.
Labour PS Shadrack Mwadime said about the looming layoffs: “We will ensure justice is served in the interest of both affected employees and employers. This meeting is where we will interrogate the issue of continuity.”
