Pep Stores has put its employees on notice about plans to terminate some employees as a last-resort measure order to stay in business.
Section 25 of the Employment Act requires employers who want to retrench employees, to give written notice to both the Commissioner of Labour and Social Security and each one of the employees likely to be directly affected by the retrenchment. Resultantly Pep Stores has initiated the retrenchment process by complying with this provision.
“Pep has, for the last five years, struggled to meet its sales target. It was made worse during the Covid-19 pandemic. More recently, the government ban on importation of school uniforms has further impacted Pep’s business in a negative manner. There has been a sustained drop in its retail business and revenue across Botswana. This prevailing situation is a threat to the long-term viability of Pep’s business,” says the notice, adding that in order to remain competitive under these circumstances, Pep intends to restructure its business operations.
The notice says that this restructuring exercise will “likely” involve the closure of a number of stores countrywide as well as the retrenchment of 80 sales assistants and one store manager. For now at least, those facing the axe have not been identified and the notice invited employees to a virtual consultative meeting to discuss the matter further.
“Pep is also considering the provision of an incentive package for any employees to be affected who may choose voluntary separation from Pep,” the notice says.
Then again, the retrenchment may not happen. The Section 25 notice also invites employees to propose ways that the retrenchment can be either minimised or completely averted.
While the notice doesn’t say as much, the government’s ban on the importation of school uniforms will be the main reason that Pep is in dire straits. As with textbooks, Botswana schools are a very lucrative market for school uniforms. The ban is part of an ongoing citizen economic empowerment. Beginning in January last year, the government banned the importation of 16 classes of vegetables. Bottled water has also been banned and toilet paper is among items whose importation will be banned in not too long.
Following the ban on the importation of school uniforms, Choppies supermarket partnered with the Apparel and Textile Association of Botswana. Choppies will sell the uniforms at its stores countrywide.
