It is a public secret that COVID-19 pandemic is having far reaching effects on companies across the world. However, it has hit hard newspapers due to lockdowns that have resulted into unprecedented reduction in copy sales and advertising.
In Uganda, the Vision Group, the leading media house has stopped printing some titles including The Kampala Sun, Etop and Orumuri in an effort to cut down some costs.
To further keep the company afloat in these trying moments, Vision Group Chief Executive Officer, Robert Kabushenga (pictured) has announced massive salary cuts.
In a letter dated April30, 2020 seen by Business Focus, Kabushenga informs all staff that the business has been negatively impacted by the response to the COVID-19 pandemic in a more severe manner than could have been foreseen.
“…the recent downturn requires even more stiff measures to keep the business viable,” Kabushenga writes, adding: “This necessitates that for the first time in sixteen years management has to take drastic measures to reduce the wage bill.”
The Vision boss adds that employees will receive full pay for the month of April 2020 but will effect gross salary reduction effective May 2020 of 60% for employees “who earn above Shs19m, 45% for those between Shs8m-19m and 40% for those who earn below Shs8m.”
“This position will remain in place until further notice. Full details will be communicated in a personal letter to each staff member,” Kabushenga said, adding that further measures are still being discussed and staff will be notified accordingly.
“It is necessary for these measures to be undertaken to enable the company navigate the difficult market,” he concludes.