As it was touted as a game changer as far the South African technology is concerned, Mara Phones SA project is set to cut jobs.
BusinessTech Africa understands that MPSA, the company used to complete the management buyout (MBO) of embattled smartphone manufacturer Mara Phones SA, is now getting ready to retrench its employees.
This comes after a report carried posted by this website that Mara phones immediately aimed at resuming operations in the middle of 2022.
However, it seems the company has already started informing its workforce and stakeholders of looming retrenchments according to Section 189 of the Labour Relations Act.
ITWeb reports that the mobile phone manufacturer has a staff complement of 68 employees, but indicates the number of affected employees is not clear at this stage.
The company has also confirmed that consultations with the workers and their representatives will commence on Friday this week.
“Sadly, the company is forced to take this difficult but necessary restructuring process if we are to ensure its long-term sustainability,” said Ntokozo Mahlangu, director of MPSA Projects.
“This process will, no doubt, affect people’s livelihoods and have a knock-on effect on their families. This is sincerely regrettable.
“Having exhausted all other options, we are now faced with the difficult task of having to restructure the business in order to remain agile to future opportunities.
“Notwithstanding this, the employees that will be retrenched shall be given first preference for re-employment should the operations of the company recommence.”
Dubbed the symbol of “true” African smartphone manufacturing, the company opened its doors at the Dube Trade Port Special Economic Zone in KwaZulu-Natal back in 2019.
In over a year, Mara Phones announced that the manufacturing plant was “empty and on auction”, with the sale mandated by Standard Bank and the Industrial Development Corporation.
Nevertheless, MPSA could not resume operations owing to a number of reasons, according to the statement.
“After carefully considering the above, it became clear that the company has no other viable alternative,” the statement reads.
“It has not been able to recommence operations and there has been no work for the employees since emerging from the business rescue in July 2022.”
It goes on to say that in the interest of fairness, transparency and good governance, it intends to conduct “meaningful and consensus-seeking” consultations with multiple stakeholders, including the employees and their representatives.
“During these consultations, the company will attempt to reach a consensus on the proposed method of selecting potentially affected employees, the number of employees likely to be affected, and the job categories.
“Based on the outcome of the consensus-seeking process, affected employees will be individually identified and informed accordingly.”