KQ is fighting an application filed at the Labour Court by employees through the Kenya Aviation Workers Union (Kawu) opposing the restructuring process.
Justice Hellen Wasilwa on Thursday extended the court order temporarily stopping the restructuring.
The airline argues in court papers that it has faced financial challenges, prompting a restructuring in a turnaround bid.
National carrier Kenya Airways #ticker:KQ has defended its planned restructuring saying it is intended to help it out of the recurrent financial trouble.
The airline is fighting an application filed at the Labour Court by employees through the Kenya Aviation Workers Union (Kawu) opposing the restructuring process.
Justice Hellen Wasilwa on Thursday extended the court order temporarily stopping the restructuring.
The airline argues in court papers that it has faced financial challenges, prompting a restructuring in a turnaround bid.
Kenya Airways first-half pretax loss more than double from a year earlier to Sh8.56 billion.
It sank into losses in 2014 after making costly aircraft purchases, which coincided with a slump in tourist and business travel to Kenya blamed on a spate of attacks by Somalia-based Islamist militants.
The losses have triggered layoffs at the national carrier.
“Upon presentation to the Audit and Risk Committee of the Board of Directors, Kenya Airways in accordance with its Board Charter resolved to have the department restructured in order to improve efficiency and productivity,” Kenya Airways said in court papers.
The airline argued that at all times, it has the prerogative to change its organisational structure to suit its needs and align it with its strategy.
Kenya Airways had on July 4, 2019 notified the Labour Commissioner that it was involved in restructuring exercises that would result in job redundancies.
“Consequently, the management came up with a five-year plan and an organisational structure that would suit the airline’s needs, which was approved by the Board,” Kenya Airways in court papers.
The restructuring targeting staff in the Supply Chain and Facilities departments seeks to ensure that employees are qualified and suited for their roles.
The airline accused the union of jumping the gun, noting that it is only after the restructuring is complete will it be able to determine the number of jobs it will terminate on account of redundancy.
Currently, no employee has had their employment terminated.
The case will be heard on April 2.
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