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Auction Holdings Limited (AHL) has retrenched 107 employees and turned some permanent employees into temporary workers.
The company’s Chief Executive Evans Chipala said the retrenchment is a result of a reduction in revenue from the levy (commission) the company gets from farmers selling at its floors.
“We are going through difficult times. This levy has gone down from 3.95 percent to 2.5 percent of the gross proceeds realised by the grower on the floors after a directive from government last season,” said Chipala.
Some employees suspect the company has done this to avert a major strike the sales floor team was planning to stage.
“Management engaged a consultant who came up with a strategic plan, but management has secretly guarded that report. It’s a secret even to workers’ representatives, who have tried to find out what is in that report,” said one representative in Lilongwe.
But Chipala quashed such sentiments, stressing that everything was done with thorough consultations with staff representatives.
He referred the reporter to Administrative Executive Pempho Likongwe for details.
Likongwe said the reduction of the levy has reduced AHL’s income by 36 percent, and the company is anticipating a loss this year.
He said the consultants discovered that the company’s major expenditure was on staff and recommended reduction in that area.
The company has over 2,400 employees, including seasonal workers. The retrenchment has affected all grades and departments.
“And, even the position of operations manager at all floors has been abolished. Those holding those positions have been retrenched. Each floor will remain with a floor manager,” said Likongwe.
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