The Standard Group (SG) has announced plans to fire more than 300 employees in its latest efforts to remain afloat.
On Tuesday, July 30, the Standard Group Board issued a notice of intention to declare redundancy as stipulated in section 40 (1) of the Employment Act, 2007.
The Board explained that it reached the decision considering the harsh economic environment and the changing trends in the media industry and among the audience due to the advancement in technology.
“In reaching this decision, we took into consideration, the difficult operating environment and its long- drawn effect on revenue generation. This situation has been witnessed on the back of shifting trends in media consumption, occasioned by technological changes in the digital media landscape and emerging consumer preferences which have necessitated a rethink of our business model,” read the notice in part.
SG issued a one-month notice starting from July 31 stating that the affected employees will be informed in writing.
“The redundancy notice takes effect upon expiry of the one-month notice issued on 31 July 2024 and is expected to affect more than 300 employees across various departments. All the affected employees will be duly informed in writing,” said the Board.
Business and Product Reorganization
The Board expressed confidence that the reorganization of the business through restructuring will place the media company in good stead by adopting a leaner, more efficient structure for better performance and growth.
Additionally, the Board said Standard Group will work with the new leaders to reorganize business to ensure stability and offer quality journalism.
The SG also announced plans to rationalize their products to ensure that they remain aligned with the media landscape.
“Coupled with the new leadership that is coming on board, we consider the reorganization of our business as a necessary step intended to ensure business stability and continuity in the coming months as the Group strives to sustain and enhance the quality of journalism it offers,” said the Board.
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Compensation of Affected Employees
All the affected employees will receive payment for the days worked until their date of exit.
They will also be entitled to severance pay of 15 days (or as indicated in the CBA for employees who are members of a union) for every completed year of service.
Additionally, notice pay will be provided as per the contract of employment, and employees will be compensated for any accrued leave days not taken at the time of exit.
Standard Group will also pay pension dues or gratuity in accordance with the Scheme Rules and the respective contract of employment.
This came at a time when SG journalists who are members of the Kenya Union of Journalists (KUJ) issued a 14-day strike notice various issues including seven months of salary arrears.
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KUJ Warning to Standard Group
In a notice on Sunday, June 30, KUJ demanded the media house to come up with a payment plan to clear the arrears.
KUJ Secretary General Erick Oduor said the Union has raised issues about settlement of the arrears, in the past.
“For seven months now, staff at the Standard Group PLC, have gone through untold sufferings due to unpaid salaries despite hard economic times in the country,” says Oduor.
KUJ directed SG to provide Sacco savings contributed by its employees and remove the cap on medical claims and stop capturing the biometric data of staff to enforce a new directive on reporting time.
“The Kenya Union of Journalists, therefore, is demanding an immediate response from the following issues failure to which we shall force a total shutdown of operations of Standard Group PLC in the next 14 days. In this regard, we have issued a 14-day strike notice to the Cabinet Secretary for Labour on our intention to stage a work boycott over the following issues,” KUJ said.
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