Pirelli Agent in Ethiopia Lays off 124

Trans Ethiopia, exclusive agent of Pirelli Tyre in Ethiopia and a subsidiary of EFFORT, laid off 124 employees from its Mekele and Adama branches. The Adama branch released 29 employees while the Mekelle branch released 95. The latter were released two weeks prior to the employees at the Adama branch office.

The Addis Fortune reported that the company cited severe losses and restructuring as the cause of the layoffs. Fortune said that it has been two years since the company has even turned a profit. Averaging about 13 million ethiopian birr (approximately £750 million) in revenues a year, the company pays 25 million birr in salaries annually.

In an odd human resources move, it appears staff were sacked and re-hired at least twice. After receiving initial letters, employees received a second letter dated April 14, 2007, which informed them that they had not been fired, that they could return to their positions, and that this letter made the previous one null. But the re-employment did not last very long, with the labour union asking that it should have its own restructuring studied in order to see if the management was taking the correct course of action.

Trans Ethiopia SC was established in January 2003 with a capital of 12.7 million birr. The company is owned by EFFORT companies, with the sole individual shareholder being Sebehat Nega, general manager of EFFORT and managing director of Trans Ethiopia.