Tuesday, March 31, 2009

Zain workers sacked.

Over 140 Zain employees have been laid off following the company'sdecision to outsource some of its services.

However the company insists it is not undergoing any financialdifficulties and the move is part of its restructuring programme.The company says the restructuring process is meant to improveefficiency and that it was aligning its business model in all itsoperations with a view to improving delivery of services to itscustomers.

Zain notes that the modular business model will enhance its deliveryof service.

Zain Africa Chief Executive Officer, Chris Gabriel, said all the legalrequirements had been followed in the laying off exercise that willsee the retrenched staff go home with a generous compensationpackage.He said the company would work within 90 days to try to absorb theworkers into other partner organizations.

Gabriel said that as part of restructuring, Zain will implement aModular Business Model (MBM) which will enable its operations to focuson key customer faceting activities and delivering true marketdifferentiation.

Gabriel noted that the implementation of the MBM is part of Zain'sdrive to become a top 10 global mobile operator by 2011.Zain Kenya CEO, Rene Meza, said that retrenching of the staff was adifficult decision but necessary adding that since this was asensitive matter they would engage counselling services for theworkers and also look into their medical insurance covers.

Meza said the MBM was a successful model implemented in Zain SaudiArabia where Zain launched its operations in 2008 and was successfulin attracting more than one million customers in the first monthfollowing the launch .

He noted that Zain has invested more than 12 billion dollars in Africaalone and will pump in further 1 to 2 billion this year adding that inKenya it had invested 38 billion shillings and contribution 18 billionin taxes.

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