Retrenched workers reject KQ's offer

Retrenched Kenya Airways workers have rejected the airline's offer to proceed on leave pending redeployment.

Instead, the 447 employees demanded immediate reinstatement following a court ruling that KQ should take back the sacked workers.

In a statement, the airline's managing director Titus Naikuni said the workers had been issued with letters.

"The employees who reported to work this morning as directed by the court are now in the process of being issued with reinstatement letters and will be sent on leave awaiting redeployment,” he said.

While citing a bloated workforce as a worry for the company’s dwindling revenues, the national carrier carried out the Sh826 million one-off staff retrenchment that led to series of court cases with the workers representative, Aviation & Allied Workers Union (AAWU).

KQ recorded a Sh4.7 billion loss for the first half of its financial year ending September 2012, a first one for a listed company in the country.

The court said Kenya Airways was faced with a cyclic economic downturn, not a downfall, and the financial statement loss was not a valid reason for laying off workers.

“Many companies make cyclic losses and do not rush to retrench,” Justice James Rika said during the ruling Monday.

The Judge ordered the sacked employees to report for duty Tuesday morning at 8am.

Mr Naikuni statement has also indicated that the company is seeking redress.

“As earlier communicated, our lawyers are studying the ruling and its implications, and will advise on the next steps in due course,” he said.