Finlays, a multinational flower company is the latest firm to announce its plans to lay off its workers in a scary growing trend that has seen major businesses in the country close shop and send home all the employees.
James Finlay, the company founder, announced that1, 700 workers would lose their jobs when the Company closes down farms in December 25th 2019 saying high labor costs and poor prices were making it impossible to run the Company.
Finlays, in a statement sent to media houses, said that it would close two farms; Chemirei and Tarakwet, by 25th December 2019 saying there has been an oversupply of flowers in the European markets and the demand has marginally declined.
Among the flowers Finlays says has lost demand in the International market despite initially fetching good prices is rose flowers Finlays, in its statement, noted that the weakening exchange rates had greatly contributed to its move to close the company.
“As a result of this and other challenges, extreme weather conditions and high labor costs, the directors of James Finlay have made the decision to close the Chemirei and Tarakwet farms earlier than initially communicated,” says the presser signed by general manager Stephen Scott.
“Employees seconded to Murara plants limited shall also be affected by this change, junior and senior management who are leaving the business will be communicated to on a one to one basis,” the presser read.
The Finlays Company had earlier scheduled to close in 2020 but reported that it was losing a lot of money in maintaining the employees and which was no longer sustainable according to the presser.
Finlays had already relieved some of its employees but at the end of the process, all the 1,700 employees will have been declared redundant. Companies that have already sent home their employees and closed shop include: Betin, Telkom, SportPesa, Stanbic and the East Africa Portland Cement are among the companies which have recently rendered their workers redundant.