We are not in Guantanamo, says Omar Effendi's HR chief

Sherine El Madany
5 Min Read

CAIRO: When Saudi-based Anwal finalized purchase of Omar Effendi last February in a staggering deal worth $102.5 million, the story of Egypt’s renowned department store was just beginning.A number of outgoing employees had gone on strike, protesting early retirement packages. In response to these allegations, Essam Hassan, Omar Effendi’s chief of human resources and administration, confirmed during a press roundtable on Tuesday that the new management would offer full benefit packages to retiring employees including payment for accumulated holidays.”We did not mistreat, abuse, or fire any of our employees or force them to retire. We are not in Gunatanomo, and we do not hold machine guns in the faces of our employees, said Hassan. “Anwal is an investment company that poured in millions to acquire Omar Effendi. It seeks returns on this investment, so why would it mistreat employees? This [practice] will jeopardize our business. He explained that disgruntled employees can present complaints to the human resource department or press charges against the company. “That has not been the case with Omar Effendi, which [negates allegations] of malpractice. By virtue of the contract signed with the Holding Company for Trade, some 1,200 employees would apply for selective early retirement. Last May, Anwal presented a comprehensive retirement package which constituted a total of LE 10 million offered to all 1,200 retirees. This was followed by a second phase, whereby some 1,450 employees “voluntarily applied for early retirement. “The same deal was offered to phase two retirees. Each one received a full retirement package in addition to payment of accumulated holidays, in a [deal] worth LE 40 million, Hassan said. However labor unrest was triggered by concerns that phase two retirees had received lower pensions than those of phase one. “Pensions are not determined by Omar Effendi. They are set by the Social Security Authority, he clarified.The authority, he added, set pension settlements for phase one retirees based on an average of their salaries during their last two years of employment. Phase two retirees, on the other hand, received settlements based on an average of the last five years of employment – meaning they would naturally receive less money than their counterparts.”This matter is out of our hands. It is the Social Security Authority’s decision, Hassan pointed out. “However, with regard to our employees’ rights, we are trying to arbitrate with the Authority. The new management, he added, would no longer accept applications for early retirement because it cannot spare any more employees. “Early retirement is no longer acceptable, and those who want to [leave] will have to submit their resignations. Upon purchase, the new retailer began to tackle everything from administrative and financial reform to modernizing branches and launching an expansive employee-training program. The company also hired around 500 new employees to rejuvenate the sales and marketing departments and bolster Omar Effendi’s financial performance.Anwal has earmarked more than LE 300 million to renew the dilapidated outlets, starting with the most important branches such as Adly, Hegaz, Morad, Sawalhi, Roxy and Agami. To date, 30 out of 82 branches have been revamped, and renovation work on all branches is due to wrap up by March-April of next year.The company embarked on deploying advanced technological systems in all Omar Effendi’s branches and establishing an electronic database connecting all outlets and warehouses. At this stage, roughly 70 percent of the company’s activities have been automated.Meanwhile, renovation plans entail revamping the facade of the different branches, fixing broken displays and cleaning up the stores. Anwal also began renovating Omar Effendi’s internal design, décor and lighting, as well as installing air conditioning and other amenities to improve the shopping experience.Omar Effendi expanded its line of products to include a wider range of merchandise from furniture, carpets, and heavy-household equipment to mobile phones and other electronic commodities, sold for the first time in Omar Effendi stores. It also established a new finance scheme allowing customers to purchase commodities in installments offered through Audi Bank.These renovation steps have started to bear fruit, with the store now recording monthly sales turnover of around LE 35 million after barely attracting as little as 30 customers per day, according to the company. “Our vision is to make Omar Effendi the true model of retail services not only in Egypt but in the entire Middle East, Hassan boasted.

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