Apparel giant Brandix reinstates pre-COVID salaries

Sri Lanka’s biggest apparel exporter Brandix Ltd., has reinstated staff salaries to its pre-COVID level, as per an internal memo seen by the Daily FT.

Being one of the first to slash employee remuneration soon after the outbreak of the COVID-19 pandemic in mid-March last year, Brandix’s reinstatement of former salaries too comes in quick time. 

The memo stated salaries will be “restored retroactively at all levels”. 

“This will be done for everyone that worked tirelessly to overcome these challenges without quitting. We intend on making this ‘catch up’ payment before the end of March,” it added.

Overall, Brandix, with a global footprint of 28 manufacturing facilities (21 in Sri Lanka, four in India and one each in Bangladesh, Cambodia and Haiti), employs a workforce of over 60,400. Of that, around 35,000 staff is based in Sri Lanka, consisting of 33,260 associates and staff and 1,740 executives. 

“It was a time when we feared that the world economy would collapse and our own survival as a company was questionable. So much has happened in these past 12 months that has reinforced my belief in our strengths, and also made me aware of our gaps. What we do know is that COVID has in many ways changed the way we do business,” Brandix Group CEO Ashroff Omar told staff in the internal memo.

“Thanks to your hard work and contribution from our colleagues at InQube, and the unexpected benefit from the sale of PPE, our financial performance has exceeded our original dismal expectation.” 

While noting that the move was a cause for celebration, Omar cautioned the Brandix team that there are still many challenges to overcome as the pandemic is still not over. “We will require your support as we navigate through the changes required to succeed in a much more challenging world, in a new and flexible way of working.”

In the internal memo, Omar also recapped how Brandix managed the COVID-19-triggered crisis. 

He shared his gratitude to the tireless efforts of the leadership team, the lenders and creditors the Group worked with to help the Group, and in turn allowed Brandix to help customers ride through the storm. 

“We had to be hard on ourselves by foregoing our salaries completely or imposing heavy cuts depending on seniority. Our Associates who could not come to work lost 50% of their salaries, and even those who could come, worked without their allowances from April to September 2020,” Omar recalled.

Brandix worked around the clock, against many odds, and thanks to the dedication and personal sacrifices, the Group, according to Omar, was able to overcome these challenges. 

“We were fortunate that we could venture into completely new products such as PPE to keep the factories running. Then, in October, the second wave hit us. Many of our employees faced unprecedented challenges to their personal wellbeing, and as a company, our reputation took an unfair setback.

“However, during the depths of despair, we witnessed firsthand how our culture of ‘Inspired people’ took over to bring us closer together as one family. You supported, comforted, and encouraged each other at hospitals, quarantine centers and at work. I am thankful to note that all our employees returned home without any major complications.” 

He expressed gratitude to key customers who stood by Brandix during this crisis, by accepting later deliveries and even paying for the cost of air freight. “We are indeed very fortunate to have such loyal customers. 

“It is said that ‘when you don’t stand for something, you could fall for anything’. I am proud to say that despite all the adversity around us, we stood steadfastly to our RITE values of Respect, Integrity, Teamwork and Excellence, and demonstrated our true character. 

“I was looking back and reflecting on my message from this time last year, which said: ‘Despite the despondency today, I am confident that no matter what, we will prevail. This dark cloud too will present us a silver lining. It will give us the opportunity to unlearn and relearn, and to emerge as an agile and focused unit ready to face the realities of a new tomorrow. We will need patience, sacrifice, determination and, above all, belief in yourselves and your own Brandix team’. 

“I can honestly say that all this has proven to be true. We are emerging as a stronger company ready to take on the challenges of the future, which will require organisational flexibility, new skills to embrace the new world of digitisation, and quick action through empowered teams in a new and flexible way of working.” 

Omar said that he is convinced that “with each of you in the team, we will be able to face these challenges with confidence and win as we have done this year”.