Mumias Sugar workers strike over outsourcing of services

Operations at Mumias Sugar Company were on Monday paralysed after workers went on strike demanding an end to outsourcing of the miller’s services.

The Kenya Plantation and Allied Workers Union (KPAWU) called the strike, saying the 300 services contracted out were behind the losses the miller had incurred in the recent past.

“We want to review the contracts with the management and agree on which ones can be retained and those that can be done away with,” KPAWU Mumias branch secretary Bonface Mulomi said.

The union had issued a seven-day strike notice on August 2. The company outsources most of its services—from transportation of cane to security officers— a business model the workers say had either led to duplication of services or retrenchment of staff.

The management, however, said contracts had led to efficiency especially in cane delivery, but the union said the contracts cost more, reducing the income due to farmers. Mr Mulomi said the sugar company could save about Sh2.5 billion by rationalising contracts.

The firm announced a Sh1.1 billion net loss for the half-year to June and has issued a profit warning for the full year, blaming entry of duty free sugar from Uganda and Tanzania under the East Africa Community common external tariff.

Net revenue dropped from Sh6.9 billion to Sh5.4 billion from the previous year. The strike was called off Monday afternoon after the management agreed to address the grievances during a meeting with the union scheduled for Thursday.

Under the agreement, workers were to resume work immediately as the management reviews the services under contracts.