Ministries differ on Kenya Airways’ workers lay-off before House team
Former Kenya Airways employees protest outside Kenyatta International Conference Centre in Nairobi during the KQ’s annual general meeting on September 27, 2012. The airline shed off 578 jobs in a bid to cut its wage bill. Photo/Salaton Njau
What you need to know:
The Ministry of Labour told parliamentary Committee on Labour and Social Welfare that KQ had breached employment rules by not giving workers enough time to accept the voluntary lay-off plan.
But Transport minister Amos Kimunya, who appeared before House team earlier than the Labour ministry officials, said the retrenchment was done in accordance with law and that the layoffs were necessary.
The national carrier shed the 578 jobs in a bid to cut its wage bill that has doubled in the past five years from Sh6 billion in 2007 to Sh13.4 billion and reduce it to about Sh1.3 billion.
The Labour and Transport ministries on Tuesday openly differed before a parliamentary inquiry on whether Kenya Airways followed the right channels in the recent lay-off of 578 employers.
The Ministry of Labour told parliamentary Committee on Labour and Social Welfare that KQ had breached employment rules by not giving workers enough time to accept the voluntary lay-off plan, failure to communicate to some of the affected staff in writing in addition to failure to counsel and train the retrenched employees.
But Transport minister Amos Kimunya, who appeared before House team earlier than the Labour ministry officials, said the retrenchment was done in accordance with law and that the layoffs were necessary.
The national carrier shed the 578 jobs in a bid to cut its wage bill that has doubled in the past five years from Sh6 billion in 2007 to Sh13.4 billion and reduce it to about Sh1.3 billion.
“I am shocked that you are now saying that the exercise had issues while your Transport ministry counterpart told us the complete opposite,” Charles Keter, a member of the committee, told Labour assistant minister Sospeter Ojaamong in reference to Mr Kimunya’s comments
The Ministry of Transport ministry is represented in KQ’s board by PS Cyrus Njiru on the strength of the government’s 29.8 per cent shareholding in the airline. Finance PS Joseph Kinyua also has a seat in the board.
MPs have put the two on the spot for not blocking the retrenchment, but Dr Njiru said the lay-off had received adequate board support.
The State’s stake is below the 51 per cent threshold needed to make it a public owned firm — a position that makes it easier for the government to control the affairs of companies.
Mr Kimunya, who faced the committee on Tuesday morning, said the lay-off was necessary to cushion the airline from dipping into losses.
“From where we sit as a ministry, the exercise was done in accordance with the law and I got the same information from the airline’s management. We have no reason to doubt them,” said Mr Kimunya, cautioning the committee against believing complaints from the affected employees.
Mr Ojaamong told the committee that an ongoing investigation by the Ministry of Labour into the retrenchment had revealed that it was “cruel and barbaric”.
“Some of the employees received their sack notifications through mobile phones, while others were on sick leave or maternity,” he said.
The ministry added that while a one-month notice was issued as required, the airline should have given the workers ample time to decide on whether they will accept the voluntary retirement offer or not.
Labour PS Beatrice Kituyi told the committee that KQ gave the workers 10 days instead of the 30 that is the practice in Kenya.
“In our investigations, we concluded that pre-retrenchment, redundancy training and counselling were not done and also that some employees were sent on early retirement while they had not opted for it,” said Ms Kituyi.
This statement was in conflict with that of Kenya Airways CEO Titus Naikuni.
“KQ is offering job and business training services to all those affected at the company’s cost to ease their transition into new jobs or self-employment,” Mr Naikuni said in a statement.
The Labour ministry said Prime Minister’s Officer had instructed it to investigate the issue and that it would release a full report Friday.
Prime Minister Raila Odinga had earlier directed KQ to suspend the retrenchment, but the airline went ahead with the plan after the Industrial Court lifted an injunction that had stopped it from sending workers home.
