Nice House of Plastics lays off staff as Covid-19 pandemic bites

One of the leading manufacturers of household items, Nice House of Plastics has announced that some of its staff will be restructured as the Coronavirus effects bite the economy more.

“The company will immediately embark on a restructuring programme that will result in retirement of all those who were scheduled to retire, a total of 09 members of staff, staff redundancies affecting 47 members of staff, and leave without pay for the remaining staff for an initial three months,” a notice  by the company reads in part.

The company said that it will retain 240 employees of the 300 that it has and that these will work on a rotational basis.

Explanation

The company explained that the declining revenues mainly occasioned by economic difficulties in the market throughout the region that have seen their sales go down by 40%  have necessitated that they cut off some of their workers.

“Despite various initiatives that we have put in place, our cost base continues to be extremely high. This, coupled with other direct operating costs has put pressure on our contribution margin reducing our overall ability to operate profitably and stay liquid.”

Founded by former Uganda Manufacturers Association chairman, Dr. James Mulwana in 1970, the company however insists it will continue operating.

Nice House of Plastics is the only manufacturer of ballpoint pens and toothbrushes in Uganda.

President Museveni recently asked companies not to lay off workers, arguing that things are soon getting back to normal.

“Things may collapse elsewhere but not here. My advice is that this business of laying off workers is not a good idea. Things are going to improve tomorrow. Why do you lay them off? Because you hear in Europe people laying off workers and you also do the same,” Museveni wondered while speaking during Labour day celebrations.

“Why don’t you just say, you go home, when I resume, I will call you? They will understand because you have no money to pay them.”

The president asked companies to send their employees on leave until the situation clears other than completely laying them off.

 

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