Management of Auction Holdings Limited (AHL) has issued letters of retrenchment to hundreds of employees.
Reports indicate that about 500 employees have lost jobs, including 70 employees stationed at Limbe Auction Floors. AHL also has auction floors in Mzuzu and in Lilongwe.
Further reports also show that all employees under Malawi Leaf Company, one of AHL’s subsidiaries, have lost their jobs.
All retrenched employees have been told to stop working immediately and their last day at work is on Friday, 18 March 2022.
The government owned company wanted to implement the restructuring process last year but there were delays due to a lack of funds to pay the retrenched workers.
AHL Group has since promised to settle retrenchment packages for the 500 employees by the end of this March.
The company is expected to spend about K7 billion to settle the retrenchment packages.
AHL board chairperson Rhino Chiphiko told the local media yesterday that shareholders sourced the funds prior to completion of the exercise by 31 March.
The retrenchments come as the Tonse Alliance Government led by President Lazarus Chakwera is struggling to fulfill its promise to create jobs.