Published: 05 November 2013

Meikles department stores has reversed its decision to retrench 55 of its workers after the retrenchment board ordered it to pay out almost $1 million in retrenchment packages.

Meikles department stores chief executive Mrs Belinda Sharples said the company has since reinstated the workers after deciding to grow the business rather than pay $900 000 in retrenchment packages. "We cannot afford to pay the packages proposed by the retrenchment board because we are currently facing a liquidity crisis.

It is better for us to grow the business and create employment rather than pay the packages.

"Our decision to retrench has been reversed by the executive and the company is prepared to carry the costs," she said in an interview.

The retrenchment board proposed that Meikles pay a month and a half salary per year served and the retail company however challenged the judgment. In an appeal letter to the retrenchment board Meikles stores, stated that they cannot afford the proposed retrenchment packages.

"During the course of the retrenchment board meeting we agreed that if the board choose to impose packages above what we are ready to offer, Meikles department stores would have no option but to continue to carry to the monthly expenses of excess staff and allocate them to the various business units," read part of the letter.
- bh24

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