Kenya Airways hires 60 staff on contract terms

Kenya Airways has recruited over 60 new employees through a third-party company despite ongoing negotiations with other subcontracted staff to improve their working terms.

The national carrier, known by its international code as KQ, has engaged a Nairobi-based human resource firm — Preferred Personnel Africa — to hire cabin crew, customer care and ground handling staff.

The new recruits, a majority of whom are flight attendants, are currently being trained before being absorbed into the airline in the coming weeks.

The national carrier is recruiting three months after 500 staff from another sub-contracted firm went on a go-slow demanding better salaries and benefits and on the backdrop of staff sackings that have to date affected 118 people.

“I can confirm that KQ has engaged us to be a recruitment vendor to help them efficiently fill employee positions in the company,” said Rose Musau, the founder and chief executive of Preferred Personnel Africa.

About 500 KQ employees subcontracted from Career Directions Limited (CDL) — one of four HR firms the airline deals with — went on a go-slow in October demanding to be made permanent staff.

The other companies are Insight Management, Tradewinds Aviation Services and Strami.

The disgruntled CDL staff also wanted their medical insurance covers enhanced to include family members and eligibility to receive discounted tickets — benefits permanent KQ staff enjoy.

The employees, who are also non-unionised, received backing from an airline workers’ umbrella union which also demanded that KQ terminate the outsourcing of staff claiming it was too costly.

The CDL staffers resumed work after their management and KQ agreed to look into their grievances.

READ: KQ in next phase of layoffs as it eyes return to profitability

The outsourced striking employees have not however been given permanent jobs that they were demanding.

“We are glad to inform you that a decision to enhance your medical benefit has been reached,” a memo from the CDL management to its staff states. “(The) enlarged scope will include a spouse and four children up to the age of 18 years or 24 years if in college.” When contacted for comment, CDL managing director Lucy Mmari said the company’s contract agreement with KQ remains unchanged but confirmed that some employee benefits had been reviewed.

Kenya Airways is deep in the red having reported a Sh4.8 billion loss in the six months to September 2016, a significant improvement from the Sh11.95 billion loss recorded in a similar period last year.

The airline, which reported successive full-year losses for the four years to March 2016, is implementing a back-to-profitability plan to boost revenue and cut operating costs.

This has seen the airline let go of 80 employees last July and 38 more last week as management chases annual savings of Sh2 billion on its payroll.

KQ did not offer its staff the option of applying for voluntary early retirement (VER) which it said would be costly and allow for potential exits by key employees.

The airline’s latest decision to hire more contract staff despite the dissatisfaction of current employees demonstrates its resolve to continue cutting staff costs.

Sub-contracting in some cases results in an easier termination process, reduces training costs and exposes companies to lower levels of legal action by staff.