South African retailer Game Store has fallen out with its staff over redundancy pay as it seeks to exit the Kenyan market.
This follows a warning by the Kenya Union of Commercial Food and Allied Workers demanding the retailer to reach a deal with the union by Friday or face a court action.
Massmart which owns Game Store declined to make additional payments, claiming that it cannot meet the union’s demands citing financial difficulties.
The staff are demanding severance pay of 30 days for every year worked and goodwill of 15 days for every year spent on top of an equivalent gratuity.
They are also demanding the retailer to pay two months’ salary instead of notice for workers shy of their five years in the company.
However, the retailer noted that it can only afford severance pay of 15 days for every year worked and for a month’s salary instead of notice for workers who have spent less than five years in the company.
“Given the precarious financial position of the company currently, the company is of the view that the proposals are not reasonable
“You and the rest of the associates are aware the company has never made a profit in Kenya since it commenced trading and it has suffered trading losses year after year,” Massmart said in a letter.
As earlier reported on WoK, the retailer close its doors on December 25, 2022 in their outlets spread across five countries.
In a notice over the same, Game Stores’ owners, Massmart said the firm will exit the Tanzania, Kenya, Uganda, Nigeria and Ghana after failing to get clients.
The firm said consultations over the reason of the store’s closure had been completed and a decision to permanently close down had been reached.
At the moment, Massmart said, it is set to initiate a process of clearing stocks in the affected stores in each of the five countries.
“We would like to thank our Game colleagues, customers and business partners for their loyal support during the years that we have operated in Nigeria, Ghana, Tanzania, Kenya and Uganda,” read the notice.