MPC asks workers to apply for retrenchment

The Malawi Post Corporation (MPC) has asked its employees to apply for voluntary retrenchment as the parastatal seeks to offload over 500 employees.

MPC Management sent a circular to employees in which the workers are being asked to apply.

The circular dated July 12 says retrenched employees will get severance allowance in accordance with the Employment Act.

MPC circular

They will also get Notice pay, leave pay for any accrued days and 40 percent lumpsum from the pension scheme – if the employee is at least 50 years old or as continuously worked for MPC for not less than 20 years.

“Kindly take note that management reserves the right to reject any application for voluntary retrenchment without providing any reason for doing so,” reads part of the statement.

In May this year, MPC Spokesperson Ida Nkolimbo said overstaffing is an issue of concern at the company since staff cost hovers around 75-80 percent of MPC revenue.

She added that the company is failing to make enough money as a result of the decline in letter business over the past decade.

During a reforms meeting last year, Vice President Saulos Chilima noted that MPC has not made profits in 20 years but instead it has accumulated debts amounting to K1.6 billion in utility bills and statutory obligations as well as K6.3 billion in taxes, levy and licence.

The planned retrenchment is part of a functional review which government ordered MPC to implement. If successfully implemented, it will see MPC reducing its workforce from the current 806 to 300 employees.

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One Comment

  1. Malawi Post Corporation could consider going into the email service business though the competition would be gmail, yahoo and hotmail. I do not think its a difficult thing.

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