Moha, a company renowned for exclusively supplying internationally popular Pepsi products to local markets, has been sued by workers for allegedly causing layoffs at the Soft Drinks Industry SC. The company, whose assets belong to Ethiopian investor Sheikh Mohammed Hussein Al Amoudi and was recently integrated into the MIDROC Investment Group, introduced a new organizational structure aimed at solving structural problems.
On June 6, 2024, Moha’s General Manager, Adam Dawood, announced the termination of employment contracts for workers at the Teklehaymanot factory through an official letter. This decision has sparked legal action from the affected employees.
A source, who has worked at the factory for over 19 years and is among those laid off, expressed dismay at the termination. The source stated that despite their long-term commitment and contribution to the company’s growth, previous management issues led to the company’s financial troubles, making the layoffs unjust.
The workers, now facing joblessness, have voiced concerns about their families’ vulnerability due to the abrupt decision. Despite repeated inquiries, the employees received no satisfactory explanation for the layoffs, prompting them to seek legal redress to enforce their rights.
In their lawsuit, the workers demand either the payment of their salaries or reinstatement. Moha, in its termination letter, explained that although it marketed popular products, it faced significant losses that jeopardized the company’s continuity. The letter also mentioned efforts to introduce a new organizational structure and personnel allocation to address these structural problems and ensure the joint venture’s sustainability.
The letter indicated that each employee received a two-month notice from April 9, 2024, with their contracts ending on June 8, 2024.
Historical context reveals that the Nefas Silk factory, the country’s first PepsiCo facility, was established with a capital of 1 million birr, boasting a production capacity of 20,000 bottles per hour. Additionally, the Teklehaymanot factory, initially established in 1961 as the “Saba Tej” Share Company, has been a significant player in the industry.
As the legal battle unfolds, the workers hope for a resolution that addresses their grievances and secures their rights amidst the company’s restructuring efforts.
