The eastern company has started implementing the voluntary voluntary exit project for the company's employees, by providing financial privileges in exchange for their early retirement, as part of its plan to reduce employment and concentrate production at its factory in the city of the sixth of October.
"Money and business-Al Shorouk" was published in December 2021, citing informed sources that the eastern company for smoke, is considering closing the factories of abutig and Talbiyeh, specialists in the honey industry, within an integrated plan to develop the company and dispense with branches, so that the entire production, whether cigarettes or honey, is concentrated in the industrial complex located in the city of October 6, which is the news that The company denies at the time, saying only in a disclosure to the stock exchange at the time that "it has not taken official decisions in this regard, and that it is committed to announce once an official decision is issued by the company's Board of directors".
According to an internal memo of the company, "Mal & business-Shorouk" obtained a copy of it, the company has started, as of the first quarter of the fiscal year 2023-2024, the application of the consensual exit project, allowing employees from 55 to 59 years to refer to the early pension, in exchange for receiving a two-month bonus for each year of service without a maximum, and an end-of-Service bonus equal to the average The employee's earnings, collective incentives, excellence bonus, efforts bonus, and basic salary in the last two years multiplied by 100% for the first and second year, 50% for the third and fourth year, and 25% for the fifth year, provided that this includes compensation for employees ' profits for the fiscal year ended June 30, 2023.
The options also included paying a monthly amount of 2,000 pounds until reaching pension age, or paying a single payment of 1,500 pounds multiplied by the number of the month until reaching pension age, in lieu of social insurance, provided that the company bears the share of the worker and the company in the contribution of the special insurance fund "monthly, profits, performance incentive", for the remaining period A maximum of 5 years from the date of graduation.
The consensual exit project included allowing employees under the age of 55 to leave for an early pension, in exchange for paying a two-month bonus for each year of service without a maximum, and the end-of-Service bonus is 150% of the total last annual income, as well as a lump sum disbursed in one payment of 300 pounds for each month until reaching the age of sixty, provided that The Company shall bear the share of the worker and the company in the contribution of the special insurance fund "monthly, profit, performance incentive".
The project guaranteed the right of a worker referred for early retirement under the age of 55 to obtain medical insurance for a year for those who are not covered by the medical care regulation.
The draft stipulated that the minimum severance pay for all age groups should be 300 thousand pounds.
The company assured its employees that the employees ' exit will be allowed only after the approval of the Supreme Administrative Committee of the voluntary consensual exit project formed by the decision of the CEO and managing director No. 135 issued on June 18, 2023.
The company's market share is about 70%, compared to about 30% for foreign companies, and the holding company for Chemical Industries owns 50.5% of the shares of the eastern company, while the rest of the ownership structure is distributed by 7.21% to Allan GRAY Investment Funds, 5.20% to the Union of employees shareholders, and the rest of the shares are freely traded on the stock exchange.
Eastern smoke's profits reached 3.48 billion pounds during the first half of the current fiscal year 2022/2023, supported by an increase in local cigarette sales values, compared to profits of 2.92 billion pounds in the comparative period of last fiscal year.
Eastern company's revenues increased during the first half to 9.93 billion pounds, compared to revenues of 8.53 billion pounds in the comparative period of the last fiscal year.
Source : Al Shorouk newspaper
