The Management of Philip Morris (Pakistan) Limited ("PMPKL"/ "the Company") formerly Lakson Tobacco Company Limited has made the difficult yet necessary decision to reduce operations in its Mandra factory. The decision results from the disproportionate higher cost of production at the Mandra factory being the smallest of PMPKL's manufacturing facilities and difficult prevailing economic conditions including high taxation and low consumer affordability, impacting business negatively.
In addition, this factory produced mostly packaging of 10 cigarettes per pack, a format which the government regulation (SRO 863(I)/ 2010) has barred from manufacturing and sales as of October 1, 2011. As such, the main activity at the factory has become obsolete.
PMPKL's priority at this difficult time is to provide the best possible support to the affected employees. PMPKL Managing Director Arpad Konye said that all retrenched employees were treated fairly and with dignity, and genuinely appreciated the contributions that each and every employee had made over the years".
The company has ensured that all affected workers receive their full entitlements under the law. Additionally, PMPKL has offered ex gratia payment on the same terms as the voluntary separation scheme, which remained available to workers prior to retrenchment, providing a generous package well in excess of the minimum legal requirements.-PR