The ongoing franchising of Premier Bet shops across the country has resulted in downsizing and lay-offs, forcing seven of the affected employees to drag the company to court over unfair labour practices.
Among other issues, the former employees complain that they have each been offered compensation of around K360 000 regardless of one’s responsibilities and length of service, according to their affidavits we have seen.
Final payslips of a cashier who worked in a shop in Chilobwe for nine years and that of a manager who worked for five years in a shop in Ndirande, both in Blantyre, we have seen, show that they received K366 010.63 and K363 411.08 respectively.
In their sworn statements, the ex-workers also claim that their frustrations are compounded by the manner they were laid-off, including not being given notice, or a proper exit process.
The company’s management reportedly conducted abrupt visits to the shops and summarily informed employees of their termination of service, leaving many feeling blindsided and betrayed.
Lawyer Victor Mandiwe of Chidothe, Chidothe & Company law firm confirmed being instructed by seven of the ex-Premier Bet Malawi employees to represent them in seeking redress in the matter.
While Premier Bet management was elusive about the number of the retrenched workers, one of them estimated the figure to be 150.
“The issues, indeed, pertain to alleged unfair labour practices and unfair dismissal. We filed the papers with the court and we are waiting for trial,” Mandiwe said.
In a telephone interview, Chikondi Chamkakala, a lawyer at Kita and Company, the law firm that represents Premier Bet Malawi, confirmed that they are representing Premier Bet in the case.
“The matter is at pre-hearing stage now. We will meet soon,” he said.
Commenting on the issues in a WhatsApp response, Premier Bet Malawi head of human resources Aisha Mpinganjira, dismissed the ex-workers’ claims of unfair labour practices.
“All employee separations were handled in accordance with Malawi’s labour laws and contractual obligations. Compensation packages were calculated based on legally mandated severance pay requirements, taking into account factors such as tenure and role. Premier Bet Malawi remains committed to fair labour practices and transparent employee relations,” she said.
But Mpinganjira was quick to say that for the company to remain in business, it had no option, but to go for the franchise model.
She said: “Premier Bet Malawi operates in a highly competitive and rapidly evolving gaming industry. To remain competitive and ensure long-term sustainability, we constantly adapt our business strategy to the changing landscape.”
She added that her organisation ensures compliance with labour regulations within the shops it directly operates.
Some employees who have been retained by the new franchisees claimed that their new employers, apart from reducing staff, are imposing extended working hours on them. Previously, shifts ran from 7am to 8pm, but workers are now required to work until 10 pm, which they said strains them.
One employee claimed that they are being instructed to sleep in the shops at night to guard equipment such as computers and plasma screens.
Said a female worker at one of the shops in Ndirande Township in Blantyre: “There are no security guards here. On top of our job, we also serve as security guards for the shop.’’
Mpinganjira said they have no direct control over this as the franchised businesses are no longer owned by Premier Bet Malawi.
“Since these are independent businesses, our influence in operational decisions is limited. However, we encourage all our franchise partners to implement fair labour practices, including shift rotations, in line with Malawi’s legal framework,” she said.
One of the Blantyre-based franchisees owner said, in an interview, that he makes decisions that are aimed at maximising profit.
“I extend working hours to 10 pm to allow those who knock-off from their workplaces at night to play with us. Closing our shops at 6 pm means we can’t make profits. And, obviously, Premier Bet had to go for franchise model because it couldn’t manage the shops. That tells us that we have to make some tough decisions in order for us to make profits. We trim the workforce, reduce the salaries and extend working ones. Our economy is bleeding. It is a matter of survival of the fittest,” he said.
In a WhatsApp response, Ministry of Labour spokesperson Nellie Kapatuka refused to comment on claims about unfair labour practices by both Premier Bet Malawi and some employees in the franchised shops, saying her ministry was equally interested to know more about the claims.
Malawi Gaming and Lottery Authority spokesperson Nancy Malata did not respond to our inquiry by press time despite promising to do so.
