Imported cars await clearance by agents at Mombasa port. Shippers complain that inefficiency at the port is costing them as much as Sh3.5 million per ship per day. PHOTO | FILE
What you need to know:
The demands come in the wake of shippers’ complaints that inefficiency at the port was costing them as much as Sh3.5 million per ship, per day.
A powerful union has proposed that shippers and the Kenya Ports Authority (KPA) pay members bonuses for them to meet proposed performance targets. In a letter to KPA dated September 15, the Dock Workers Union (DWU) has asked for a meeting with the port’s management and shipping lines this week, during which it hopes to firm up the bonus proposal.
The proposed bonus is the outcome of a meeting held on July 19 where union members agreed to push for the introduction of bonuses, which they argue is the best incentive for workers to improve productivity at the port.
The demands come in the wake of shippers’ complaints that inefficiency at the port was costing them as much as Sh3.5 million per ship, per day. They also complained that workers at the port were demanding bribes to work.
Improve efficiency
In a separate letter, the union argues that the incentive would improve efficiency to the point of making Mombasa port comparable with the Port of Durban, one of the best performing globally. The union is proposing that KPA and shippers jointly pay the cash, in a move likely to raise the cost of doing business in the country and the region.
“Bonus incentives shall be introduced and paid by shipping lines and 50 per cent reimbursed by Kenya Ports Authority. This will be a cost-sharing arrangement. This will not be an optional arrangement. It will be compulsory for all ships,” says DWU secretary- general Simon K Sang.
The union says one way it intends to make its members meet the targets is to form units within the port and give them set targets. Should they fail to meet the targets, their respective line managers will be fired.
“Both the Super Foreman and the Super Serang shall be held responsible for meeting set performance targets, failure to which they will be declared redundant if they fail to meet the agreed targets for up to three times in one month,” says the letter. Workers who fail to report to work for three consecutive days will also be fired.
KPA management had earlier said that it would meet the union to find ways in which efficiency could be increased but did not mention the bonus issue. “During the Friday stakeholders meeting today, (Sept 5, 2014) the issue was extensively discussed and the following measures were agreed (to). Review of targets between the union and management with a view to improving productivity,” said KPA in an earlier response to the Business Daily.
KPA also agreed to suspend construction work at the port to allow cargo backlog to be reduced.
Congestion at the port also saw KPA prioritise large ships and limit the amount of empty containers that can be exported from the port. KPA capped exports of containers at 500 units per vessel.
