By Ricks Kayizzi UMEME Limited has started issuing appointment letters to employees, who will be retained after taking over Uganda Electricity Distribution Company (UEDCL) on March 1, a top official has said.
“Everything is in place before the set date,” Umeme’s managing director Paul Mare said.
Mare did not reveal the number of employees to be laid off.
He said there are issues to be sorted out before the transfer date.
Umeme is a joint venture between Globeleq Pty of UK and Eskom of South Africa.
Another source said more than 100 workers would lose their jobs due to right sizing.
“They are retaining the majority of employees, but a sizable number will lose jobs. Those who have asked for voluntary leave and those beyond the retirement age will lose the jobs,” said the source.
Umeme was supposed to take over UEDCL in August last year, but the date has been postponed several times.
“All the issues, which have been holding the transfer have been ironed out. We are ready to move on,” UEDCL’s managing director Eng. Irene Muloni said recently.
Terminal benefits and the fate of the employees have been delaying the take-over. This has been sorted out by depositing sh8b in a classified account for the benefits.
Meanwhile, some employees complained about URA’s decision to impose a 30% tax on their terminal benefits.
A URA official said everyone is taxed the 30%.
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