Nakumatt is yet to pay 1,555 employees their May salaries and has sent over 100 others at its main warehouse on compulsory leave citing low business volumes.
Nakumatt has 62 branches across the country served by 5,700 employees. 4,000 of them are members of the union.
The retail chain Monday admitted that it had not paid the May salaries, but promised that the matter would be settled by the end of this week.
A union representing Nakumatt staff has reported the struggling retail chain to the Labour Ministry seeking intervention over delayed salaries and annual wage increments.
The Kenya Union of Commercial, Food and Allied Workers (Kucfaw), in a letter sent to Labour secretary Phyllis Kandie on Wednesday, is also demanding that Nakumatt remit funds to meet the employees’ pension, insurance and loan obligations.
Nakumatt, Kenya’s largest retail chain, is yet to pay 1,555 employees their May salaries and has sent over 100 others at its main warehouse on compulsory leave citing low business volumes.
Further, the cash-strapped retail chain stands accused of not implementing the second (and equal) phase of a 22 per cent pay rise it agreed to last year and which was to reflect in last month’s pay.
“We call upon you to take appropriate lawful action to ensure that wages are paid by law and that all statutory and other authorised deductions are paid within the set timelines,” Kucfaw secretary general Boniface Kavuvi says in the letter.
Nakumatt has 62 branches across the country served by 5,700 employees. 4,000 of them are members of the union. The retail chain Monday admitted that it had not paid the May salaries, but promised that the matter would be settled by the end of this week.
Andrew Dixon, Nakumatt’s marketing director, told the Business Daily that a delay in securing an investor — who was to inject Sh7.7 billion—had placed the business under pressure and seen them unable to meet some obligations.
Kucfaw, which has also sought the government’s intervention to settle similar pay disputes at Uchumi, is now threatening to call an industrial action if their demands are not met by June 28.
“In the event that no action is taken within the next seven days, we shall have no recourse but to withdraw labour agitate for full implementation of all issues raised.”
Retail chain Uchumi Supermarkets #ticker:UCHM, which is facing financial distress like Nakumatt, is also yet to pay its workers May salaries.
Uchumi, which has about 1,300 employees, Tuesday confirmed the salaries delay but said it had allowed staff to access a fraction of their dues through an interest-free advance.
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