Unionised workers of British American Tobacco (BAT) Kenya Plc are now earning a minimum of Sh64,857 as basic pay following a 12 percent increase last year, the company has revealed, solidifying its position as one of the best-paying corporates in Kenya.
The basic pay for BAT Kenya staff covered under the Kenya Union of Commercial Food and Allied Workers jumped to Sh64,857 in 2023 from Sh57,812 previously—widening the gap when compared to Sh28,487 minimum statutory pay by other firms.
The higher base for basic salary was further boosted by raises in leave, housing, and shift allowances.
Leave allowance under the collective bargain agreement provision for instance rose to Sh28,000 per year from Sh27,500 while the housing allowance was raised to Sh29,550 from Sh28,850. In contrast, non-union staff wages remained unchanged in the period with basic pay flat at Sh28,487 while the minimum leave allowance was not provided for.
BAT Kenya had 144 employees under the union last year, representing about one-third of its entire permanent workforce of 437 in the period. The firm negotiates the collective bargaining agreement with unionised staff every two years with BAT crediting the accord for maintaining its appeal to top talent.
“Internally, the collective bargaining agreement for unionised workers at BAT Kenya is an important tool that ensures we remain competitive and attract, nurture, and retain strong talent to facilitate our strategic imperatives,” BAT says in its latest sustainability report.
Union staff at BAT enjoy additional benefits above those of regular workers including an enhanced redundancy payoff deal where employees earn a four-day wage for every month worked in contrast to the standard 15-day pay for every year worked. Additionally, the workers have an enhanced sick leave package that covers the first three months on full pay, the subsequent 90 days on half pay, and a further three months on a third pay in any given year.
Regular staff meanwhile only have 30 days sick leave on full pay with a further 15 days covered on half pay.
Unionised staff moreover have defined acting and responsibility allowances set at 17 percent of basic pay and 19 percent of basic pay respectively.
The majority of BAT’s overall 437 workforce members are deployed in operations with other roles covering marketing, finance, corporate, IT, executive, and human resources.
Four in every 10 employees at the company are aged between 18 and 35 years while the remainder of the staff fall in ages up to 55.
BAT Kenya added 21 new hires in 2023 while 82 employees changed roles via promotions or lateral moves.
The firm however lost about 55 permanent staff members to a combination of end of contract, resignation, redundancy, and firings for misconduct.
The end of contract and resignation were the main factors for the exits with misconduct only resulting in the exit of an estimated five employees in the year.
Voluntary exits at the company stood at 4.2 percent which BAT says is below the industry average of six percent underpinning its strength as a top employer in the country.
