A KenolKobil petrol station in Nairobi. Majority of the firm’s shareholders are set to cede their stake to Puma Energy. Photo/File
What you need to know:
The takeover of the firm valued at about Sh25 billion is expected to cause a delisting from the NSE.
Through Rachier and Amollo Advocates, the three workers, suing on behalf of their colleagues, told Lady Justice Ndolo that the company started the process of sacking the employees on August 10 and that by Monday this week, more than 10 workers had been sent home.
The workers said the company’s appraisal on the employees had showed exemplary performance, adding that “the goings on justified the applicants claims that the takeover would affect the employees’ rights”.
The employees state in their application that the mass dismissals targeted at least 280 employees.
The workers had restrained the company from signing the transaction until the dispute over their fate is heard and concluded.
Majority shareholders, estimated to own about 70 per cent of the firm, have agreed to cede their shares to Puma Energy while minority shareholders would have no option but to sell their stakes at an agreed price.
Oil marketer KenolKobil was Wednesday ordered not to sack more than 250 non-unionisable staff after it dismissed 10 workers over a suit linked to its takeover by Swiss-based Puma Energy.
Industrial Court judge Linnet Ndolo also barred the directors and managers of the listed oil company from sacking Vincent Njoroge, Philip Otenyo and Ronald Lugaba or interfering with the industrial peace of the company until the case is adjudicated.
The three have lodged the suit challenging the company’s takeover and argued in court that KenolKobil was sacking workers to scuttle and frustrate their case against the company.
The takeover of the firm valued at about Sh25 billion is expected to cause a delisting from the NSE.
Kenya Shell faced similar employee trouble when it announced the sale of majority stake in Kenya and a number of African countries.
Through Rachier and Amollo Advocates, the three workers, suing on behalf of their colleagues, told Lady Justice Ndolo that the company started the process of sacking the employees on August 10 and that by Monday this week, more than 10 workers had been sent home.
The names of the sacked employees presented to the court are Joseph Thuo, Hellen Wambui, Benson Ndung’u and Thomas Ojwang’ Odol. Others, including George Githae, Lilian Ochang’, Isaiah Okoth, Elly Habwe, Ken Okoyo and Martin Njoroge, claimed they were sent packing for alleged poor performance.
But the workers said the company’s appraisal on the employees had showed exemplary performance, adding that “the goings on justified the applicants claims that the takeover would affect the employees’ rights”.
The employees state in their application that the mass dismissals targeted at least 280 employees.
A sacking letter to Mr Joseph Thuo seen by the Business Daily says in part: “Following review of all business processes across the company and in particular your department performance and in consultation with your immediate supervisor, we note with concern that your performance is below expectation.
“In line with your employment letter dated May 19, 1983, we hereby give you one month notice to terminate your services effective August 10, 2012.”
The termination letter is signed by general manager David Ohana and human resources manager Roseline Gatigi.
KenolKobil recently overturned a court order obtained by the employees blocking the takeover deal, albeit temporarily.
But Group managing director Jacob Segman said the board and management appreciated the contribution of KenolKobil workers and would continue to engage them through dialogue.
The workers had restrained the company from signing the transaction until the dispute over their fate is heard and concluded. They successfully persuaded Mr Justice Isaac Mukunya to issue an injunction arguing that the new owners could restructure the firm and send them home.
“New owners will not be liable for contractual commitments made by the present employer,” Mr Otenyo, Mr Njoroge and Mr Lugaba told the judge who consequently allowed them to institute a representative suit on behalf of all the workers.
Majority shareholders, estimated to own about 70 per cent of the firm, have agreed to cede their shares to Puma Energy while minority shareholders would have no option but to sell their stakes at an agreed price.
Mr Segman said in a statement recently that the Swiss firm would complete its due diligence — in-depth analysis of a business prior—to signing a contract.
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