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Nice House of Plastics restructures staff amid Covid-19 pandemic
In a notice released by NHOP today, the company reveals that it has been severely affected by Covid-19 forcing it to take measures to keep operating. Courtesy photo
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NHOP, however, stresses that it is well positioned to continue production.
Founded by Mr James Mulwana in 1970, NHOP is a manufacturer of household and industrial plastic items. It is also the sole manufacturer of ball point pens and toothbrushes in the country.
Seasoned local manufacturer, Nice House of Plastics (NHOP) is restructuring some staff to cushion itself against the covid-19 blow.
In a notice released by NHOP today, the company reveals that it has been severely affected by Covid-19 forcing it to take measures to keep operating.
“The company will immediately embark on a restructuring programme that will result in retirement of all those who were scheduled to retire, a total of 09 members of staff, staff redundancies affecting 47 members of staff, and leave without pay for the remaining staff for an initial three months,” the notice reads in part.
NHOP, which currently employs 300 people, will retain 240 staff who will work on a rotational basis.
According to the notice, despite various initiatives put in place by the company, its cost base remains high yet revenues continue declining.
The heightened cost base along with direct operating costs, the company says, hasput pressure on its contribution margin thereby threatening its ability to remain profitable.
“We have experienced a 40 per cent reduction in our sales. There is also reduction in demand. In order to remain operational, we have had to create a schedule for staff but no one will stay home for more than a week in a month,” Mr Paul Obiero, chief operating officer, NHOP, explains the unpaid leave adding that the exercise is expected to be completed in May.
This comes after the company registered a significant headcount increase in 2019/2020, staff annual salary increments, and adjustments arising out of the job evaluation and grade movements.
NHOP, however, stresses that it is well positioned to continue production.
Founded by Mr James Mulwana in 1970, NHOP is a manufacturer of household and industrial plastic items. It is also the sole manufacturer of ball point pens and toothbrushes in the country.
