The State Minister for Planning, David Bahati (pictured) has revealed that Government is engaging the Management of Vision Group over the recently announced massive salary cuts.
Vision Group is listed on Uganda Securities Exchange (USE) and it is majorly owned by the Government of Uganda with 53.3% shareholding. The public holds the remaining 46.7%.
Bahati added that the Company said it had a shortfall in sales as a result of COVID-19 and informed Parliament that Government is working on possible solutions on the matter.
The Minister was responding to Nwoya Woman MP, Lilly Adong, who raised the matter on the floor of Parliament during today’s plenary sitting.
It should be recalled that on 30th April 2020, the Management of Vision Group issued a memo to its staff stating that in the course of the financial year, the Company had taken several measures to manage the cost of running the business and posted a good performance in the first half.
However, the recent down turn had required stiff measures to keep the business viable.
“This necessitates that for the first time in sixteen years, management has to make drastic measures to reduce the wage bill,” Robert Kabushenga, the Vision Group CEO said in the memo.
He revealed plans to pay full salary for the month of April, but carry out gross salary reduction effective May 2020 of 60% for those who earn Shs19m and above, 45% for those who earn between Shs8Mn to Shs19M and 40% for those who earn below Shs8M.
“This position will remain in place until further notice. It is necessary for these measures to be undertaken to enable the company navigate the difficult market,” Kabushenga said.
