Ukwala faces higher costs as staff choose union

Ukwala Supermarkets is staring at higher staff costs after the Industrial Court allowed the retailer’s workers to join a trade union.

This follows a court-ordered ballot carried out on Wednesday where nearly two thirds (64 per cent) of Ukwala’s 777 workers voted in favour of joining the Kenya Union of Commercial, Food and Allied Workers (Kucfaw). The threshold is 51 per cent.

“Now that we have the numbers as required by law, Ukwala will now have to recognise the union and we shall start engagements on a collective bargaining agreement (CBA),” said Boniface Kavuvi, the union secretary general.

Ukwala employee costs are expected to balloon as unionised employees will have to be paid minimum wages and enjoy other benefits like offs, leave days, overtime pay, lunch break, house allowance and paid sick leave.

Industrial Court principal Judge Nduma Nderi had in February ruled in favour of Kucfaw and directed the Ministry of Labour to carry out a poll to establish how many workers wanted to join the labour union.

“The court reiterates its directive of August 30, 2013 to the respondent (Ukwala Supermarkets) to allow a ballot to be conducted in its supermarkets by the Ministry of Labour or through its appointed agents with a view to establish how many of its employees are members of the claimant unio,” ruled Justice Nderi.

The results of the poll will be tabled before the Industrial Court on Thursday next week, marking the conclusion of the case that has been in court since 2011.

The mid-tier retailer with 11 branches has been locked in a court battle with the union which has been seeking to enlist Ukwala staff as members and engage the retailer in a bargain for better terms.

Kucfaw is also locked in a court battle seeking to compel Kenya’s third largest retailer, Naivas, to allow its workers to be members. It also represents Nakumatt, Tuskys and Uchumi workers.

Ukwala’s unionised employees pose a headache to acquisition plans by rival Tuskys and South African giant Massmart who are seeking to take over the supermarket chain.

Ukwala staff join the trade union barely three months after Tuskys’ lost Sh100 million in foregone sales following a one-day workers strike held in the peak month of December last year.

Tuskys Supermarkets’ 7,000 employees went on strike demanding a 10 per cent pay rise and allowances, months after they joined the union.

Uchumi was in trouble in October last year when about 3,500 workers threated to down their tools if the management failed to honour a CBA that awarded them a 10 per cent salary rise.

The standoff was resolved when the Nairobi bourse-listed retailer agreed to implement the deal.