Management of Philip Morris (Pakistan) Limited formerly Lakson Tobacco Company Limited has made the difficult yet necessary decision to reduce operations in its Mandra factory.
According to a statement issued on Saturday, the decision results from the disproportionate higher cost of production at the Mandra factory, the smallest of Philip Morris’s manufacturing facilities, and difficult prevailing economic conditions, including high taxation and low consumer affordability that was negatively impacting the business. In addition, this factory mostly produced packaging of 10 cigarettes per pack, a format which the government regulation (SRO 863(I)/ 2010) had barred from manufacturing and sales as of October 1, 2011. As such, the main activity at the factory has become obsolete. Philip Morris’s priority at this difficult time is to provide the best possible support to the affected employees. Mr Arpad Konye, Managing Director, Philip Morris Pakistan said, “We are committed to ensuring that all retrenched employees are treated fairly and with dignity, and genuinely appreciate the contributions that each and every employee has made over the years”. The company has ensured that all affected workers receive their full entitlements under the law. Additionally, Philip Morris 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.
