Standard Media Group Suspends Employee Pension Contributions For 9 Months
The Standard Media Group has suspended pension contributions for its employees for nine months.
In a memo to all staff members, the Standard Group Pension scheme chairman Mr Kenneth Muoki said that the company revenues have been affected by the Covid-19 pandemic, necessitating the move.
“The Trustees received and approved the request by the employer to suspend the employer and employee contribution for a period of 9 months. However. members who still wish to make their personal/Employee contributions to do so at their own will. Therefore, with effect from 1st May 2020 there shall be no deduction from any employee until 12th February 2021,” Muoki said.
This comes a month after the media house announced salary cuts for its employees, due to the effects of Covid-19 on revenue.
Read: Standard Group Set To Fire 170 Employees As Cash Crunch Hits
In a memo signed by the group CEO Orlando Lyomu last month, the pay cuts will be dependent on the employee’s job group.
For instance, those earning more than Ksh100,000 per month will have their salaries slashed by 25 percent while those making less than the Ksh100,000 will suffer a 20 percent pay cut effective April 1, 2020.
This month, the media house is set to fire at least 170 employees due to reduced profitability.
In a notice dated March 18, 2020, Company CEO Orlando Lyomu issued a one month notice after which the company will start shedding off employees declared redundant.
“The Company, therefore, gives a one (1) months’ notice of its intention to declare redundancy with effect from the date hereof. The redundancy will be undertaken in phase,” reads the notice in part.
Read: Standard Group Sinks Back To Losses After Launching Four New Stations, Two Publications
“All employees who will be declared redundant will be paid as follows: a) Payment for days worked until the exit date. b) Severance pay of 15 days or days indicated in CBA for union workers; for every completed year of service. c) Notice pay as per contract of employment. cl) Payment of leave days accrued and not taken at the time of exit. e) Pension dues in line with the Scheme rules,” added the notice.
The media house has been losing audience after the exit of big names to rival media houses, Joe Ageyo being a notable exit.
Consequently, its fortunes have dwindled and the media house is unable to sustain quality employees.
Recently, KTN and KTN News, TV stations belonging to the media house lost Alex Chamwada’s two shows over non-payment.
Chamwada terminated the contract for Daktari comedy, the Chamwada Report and Daring Abroad.
Also, Nancy Muthoni, the producer of the weekend Property Show has terminated contract with the media house.
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