Clover Sense and sensibility
Last week, our colleagues in the business press reported that Clover stands to lose over 650 jobs if the planned merger with Israeli outfit Milco SA is given the nod by the Competition Commission. Not true say Clover. There are job losses, but they are related to the catchily-named Project Sencillo, which and we quote “involves the rationalisation of production platforms and consolidation of distribution operations in order to improve the utilisation and efficiencies of assets, including factories, manufacturing lines, warehouses and transportation.” Sencillo is ongoing, having completed Phase 1 in 2017. Phase 2 will likely take two to five years to roll out, and will proceed whether the merger goes ahead or not. Last week, our colleagues in the business press reported that Clover stands to lose over 650 jobs if the planned merger with Israeli outfit Milco SA is given the nod by the Competition Commission. Not true say Clover. There are job losses, but they are related to the catchily-named Project Sencillo, which and we quote “involves the rationalisation of production platforms and consolidation of distribution operations in order to improve the utilisation and efficiencies of assets, including factories, manufacturing lines, warehouses and transportation.” Sencillo is ongoing, having completed Phase 1 in 2017. Phase 2 will likely take two to five years to roll out, and will proceed whether the merger goes ahead or not.
Comment: It does sound like a bit of a recipe for inevitable job losses to be honest. Hopefully those affected will be properly recompensed.