Kampala — Local manufacturer Nice House of Plastics (NHOP) has laid off staff citing tough conditions created by Covid-19 outbreak.
In a notice released on Wednesday, the company said it has been severely affected by Covid-19 forcing it to take measures to keep operating.
“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,” the notice reads in part.
Owing to the significant headcount increase in 2019/2020, staff annual salary increments, and adjustments arising out of the job evaluation and grade movements, employee costs have risen to unsustainable levels.
“The competitive environment has in turn constrained our ability to continue increasing our prices to match the increasing costs,” the statement said.
“Despite various initiatives that we have put in place, our cost base continues to be extremely high.”
The management of NHOP would like to assure all its customers, suppliers and partners that the company is well positioned to continue manufacturing to the level of excellence and quality you have come to expect, it noted.
NHOP, which currently employs 300 people, will retain 240 staff who will work on a rotational basis.
Founded by James Mulwana in 1970, NHOP is a manufacturer of household and industrial plastic items.