By Mohamed Aboul Fotouh and Ahmed Amer
Aboul Fotouh Automotive, known commercially as AF Automotive, headed by Hossam Aboul Fotouh and which is Speranza’s agent in Egypt, is currently experiencing an ongoing economic crisis.
The shortage in liquidity and cash flows are behind the crisis, according to a company memorandum to the Ministry of Manpower, where the company announced its commitment to pay employee salaries.
Hassan Aboul Fotouh, the company’s Chairman, told Daily News Egypt the company has faced many difficulties, especially after the 25 January Revolution. These difficulties almost put a stop to the factory’s production lines, as they were not capable of producing new Speranza models in Egypt.
The lack of foreign currency has also weakened production, leading to the market’s needs not being met.
“In spite of these circumstances, we did not fire any employees or workers; whether in the company or the factory,” Aboul Fotouh said. “This is why the company was not able to fully pay the salaries. We paid a part of the salaries due for the company’s employees.”
He said that some of the company’s employees resorted to the Ministry of Manpower and raised collective complaints against the company, requesting all due salaries, without contacting the company regarding this issue. He added: “In accordance with this, we agreed with the Ministry of Manpower to settle the dispute and end the conflict.”
He confirmed that all financial dues that should have been paid to the company’s employees will be completely settled within the next few months, by next December by the latest.
Aboul Fotouh also mentioned that new steps for the company will be announced as soon as possible, so that its activities can recover their previous status.
AF Automotive assured its commitment to its 688 employees, also confirming its commitment to pay their salaries. This will occur without decreasing salaries or downsizing the number of employees, a method that was applied by several other entities.
In the memorandum that was raised by the company to Minister of Manpower and Immigration Nahed Al-Ashry, it was stressed that although the company’s economic crisis is continuing, as well as the shortage of liquidity and cash flows, the company had to pay the monthly salaries for 566 technicians, without any decrease, in addition to the salaries for 34 administrative personnel.
The company also paid 50% of the salaries for 26 senior management employees. A part of the salary was paid to 62 administrative personnel, with the percentage ranging from 50% to just under 100%, and the minimum level of EGP 3,000 for each person, during every month. The remaining amount has been postponed, and will be paid at a later date.
The company promised to pay the remaining amount to the administrative personnel, starting from December 2015, and over the following six months.
The salaries for July 2015, due over August, were completely paid to most technicians, with the remaining amount for the rest of the technicians to be paid within a few days. As for the administrative personnel, they will receive their salaries soon, in accordance with the method followed in paying their salaries, and the terms pledged by the company.
The company promised and assured its commitment to pay the rest of the administrative personnel’s salaries, starting from next December, and for the following six months, according to the anticipated improvement in the company’s financial status.
