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Tea workers earn higher wages than counterparts in major cash crops

tea

A worker plucks tealeaves at a farm in Muranga County, May 9, 2018. FILE PHOTO | NMG

Workers in the tea sub-sector draw higher wages than their counterparts in other cash crop industries such as coffee and floriculture despite pending pay rise deals, a new report showed.

The gap could widen further when the pending 2016-17 and 2018-19 Collective Bargaining Agreements (CBAs) are concluded.

According to CBA statistics tea workers get daily wages of about Sh450 compared to coffee (Sh422.50), floriculture (Sh315.97), and general agriculture Sh(269.40) — translating to monthly rates of Sh11,725, Sh10,985, Sh8,215.22 and Sh7,004.40 respectively.

Though the tea sub-sector is leading, its rates are of CBA 2014-2015 and are yet to be revised, yet coffee has already revised its rate for 2017-2018 and floriculture for 2017-2019.

The general agriculture sub-sector has not revised its rates and has been served with a legal notice.

The price parities come even as the Consumer Price Index and inflation have been surging with overall inflation of 6.57 in 2015, 6.32 in 2016 and 8.01 in 2017, the report showed.

Within the tea sub-sector, Kenya Tea Development Association tops daily wage payment at Sh1,003.40, followed by Ketepa (Sh547.20), and Unilever (Sh483.79).

Others are EPK (Sh419.25), DL Koisagat & Emrok (Sh419.25), Mau Tea Multipurpose Co-operative (Sh383), Kapchebet (Sh357.50), Kipsigis Highlands Multipurpose Co-operative (Sh348.10), and Kiptagich (Sh326.23).

In contrast Coffee Growers Association (CGA), which has already revised its rates for 2017-2018, pays Sh422.50, while AEA Growers pays Sh315.97.

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Non-cash benefits
Non-cash benefits in the tea sub-sector include free housing, water, electricity, wood fuel, and training opportunities.

Others are free primary school and free medical services in company facilities and NHIF outside the company.

In the report, non-cash benefits in floriculture and coffee sub-sectors are not shown.

Gratuity is mostly similar across tea, coffee, and boards as worker are eligible for the benefit after completing seven to 10 years continuous service. They are paid 21 days for every year of service.

The same applies to housing. Most employees are entitled to housing allowance of 15 per cent of their basic salary.

In funeral expenses Ketepa tea pays the highest at Sh34,000 followed by EPK (Sh32,000) and DL Koisagat & Emrok (Sh32,000). CGA pays the least at Sh17,000 while AEA pays Sh27,000. Annual leave allowance is across the sub-sectors too, as employees who have worked for between one and five years are entitled to between 24-28 days.

The revised rates follow the settlement of a CBA dispute of 2014 by the Kenya Plantation and Agricultural Workers Union (KPAWU) and employers.

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Court ruling
A ruling delivered by Judge Monica Mbaru in 2016 awarded workers in the agriculture sector an increase in gratuity pay, medical and leave allowances.

The Employment Act (Sections 31, 32, 33 and 34) requires that an employer provides an employee with housing, water, food and medical services.

KPAWU’s demand of a 25 per cent pay rise in 2014 and 25 per cent for 2015 was countered with an offer of two per cent (2014) and two per cent (2015) by the sub-sectors.

In 2017, Kenya earned Sh115.25 billion from exports of fresh horticultural produce, which include cut flowers, fresh fruit and vegetables.

Fresh produce exports are a key source of hard currency for the East African economy, along with tourism, cash from the diaspora, coffee and tea.

Kenya’s total tea export earnings rose to Sh129 billion in 2017 — the highest in five years — from Sh120 billion a year earlier, while total output was down seven per cent to 439 million kg.

Kenya is the biggest exporter of black tea in the world, and the beverage is also the leading source of foreign exchange.

Kenya’s tea export earnings are forecast to rise further in 2018, while total output is expected to rebound after a fall in production last year, the Agriculture and Food Authority’s Tea Directorate projected in February.

Tea export earnings are expected to rise five per cent in 2018 to Sh135 billion, while total output is expected to hit 452 million kilos buoyed by good weather after drought cut production in 2017, the directorate said in a statement.

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