OVER 350 TQM TEXTILES WORKERS TO BE LAID OFF

MATSAPHA – Over 350 TQM Textiles Swaziland workers will be retrenched when the company closes for the festive season as a result of a reorganisation exercise in the factory.

The factory, which manufactures fabric and supplies textile firms in the country, South Africa and Lesotho, among other countries, is under the Tex Ray Group of Companies.
The issue of retrenchment is contained in a notice dated November 18, 2015, which was addressed to all staff members by the administration. The subject of the notice letter was; Change of ownership – TQM Textiles (PTY) Ltd.
In the notice, the company notified all the over 350 staff members that their employment services would be terminated as a result of the reorganisation exercise in the company.

“The company is in a process of being owned and controlled by a new shareholder namely; Tex Ray South Africa, which would acquire a total of 51 per cent shareholding in the company. The remaining shares (49 per cent) will remain with Tex Ray Industrial,” reads part of the notice. The notice said the effect of the transaction was that Tex Ray South Africa would become the majority shareholder in the company. It also pointed out that Tex Ray South Africa intends to implement a new and different business strategy which could have an effect on the staff members’ contracts.

“The parties have agreed that prior to the take over, the company shall pay all terminal benefits due to all staff members as envisaged in terms of Section 33 of the Employment Act of 1980 as amended,” reads another part of the notice.  It said the terminal benefits would be paid in accordance with the Employment Act of 1980, meaning that it would include severance pay, additional notice pay and leave pay.
The workers were notified that they would receive their terminal benefits on or before December 18, 2015, which is the day the company would close for the festive holidays.
In the notice, the company clarified that it would not entirely cease operations but staff members’ engagement would be subject to the new owner’s recruitment policy.

Interestingly, the company thanked the staff members for the services they rendered to the company and further wished them all the best in their future endeavours.
The Tex Ray Group of Companies administrator confirmed the latest developments. He said the company was not closing down but there would be a change of directorship. He said they would reopen on January 21, 2016, where the company would recruit afresh. He said there was a possibility that some staff members would be hired while others would not be depending on the new owner’s recruitment policy.

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