HM Technologies Lays Off 11 Employees Due to Economic Reasons

Harel Mallac Technologies Ltd has received approval from the Redundancy Board (RB) to terminate the employment of eleven workers from its cabling department on economic grounds. The decision was made public in a recent statement, emphasizing that the employees did not dispute the company’s dire economic situation, particularly within the cabling division.

After reviewing the arguments from both sides, the RB concluded that it would not be feasible for Harel Mallac Technologies to maintain economic viability while retaining the affected employees in their current roles.

Rashid Hossen, the RB chairman, stated, “After considering the issues put before the Board by both parties, we concluded that it is not possible for the employer to ensure its economic survival whilst continuing to employ the Employees in their current posts, and that the reasons put forward by the Employer for them to be made redundant are justified.”

The case traces back to March 21, when Harel Mallac Technologies announced its intention to lay off the eleven employees.

Efforts to negotiate a severance agreement proved unsuccessful, despite the company employing a total of 110 workers.

Prithvy Roy Teeluck, the Human Resources and Talent Manager at Harel Mallac Technologies, explained during the proceedings that the company has been in operation for 35 years and currently employs around 110 individuals.

She noted that the roles of the cabling department employees had become redundant, citing financial struggles that began in 2019.

An internal study conducted in 2021 revealed that the department could not pursue a merger as a potential solution.

Attempts at redeployment for the affected employees were made in 2022 but ultimately did not yield positive results.

In 2023, discussions were initiated with employees to seek an amicable resolution.

However, significant alternatives to avoid layoffs were not viable, as there were no opportunities for overtime reductions, ongoing recruitment, or eligible retirees among the workforce.

Throughout this period, employees continued to receive their salaries, but workforce utilization rates over the last three years remained low, at around 20%.

The cabling department was operating at a loss, creating a financial burden on the company as a whole.

From the employees’ perspective, representatives argued that while it is true the company has faced substantial losses, the cabling department should not bear the full responsibility.

They asserted, “The Employer has incurred a total aggregated loss of Rs 74 million over the past five years.

The difficulties do not rest solely with the Cabling Department, and it would be unjust for the 11 affected Employees to bear the consequences of the company’s overall financial status.

Other departments have reported losses in four out of the last five financial years, casting doubt on the notion that the Cabling Department is solely to blame for the company’s financial woes.”

Furthermore, they criticized the employer for not providing sufficient opportunities for skill development and asserted that the attempts to redeploy the employees were insincere, insisting that layoffs would be unjustifiable without clear evidence of economic hardship and financial losses.

Source: Le Mauricien