Kambi dashes workers’ hopes of pay increase

Workers on Thursday missed the annual minimum wage increment even as the Central Organisation of Trade Unions (Cotu) disputed a State claim that a tripartite agreement had been hammered to freeze the pay.

Labour secretary Kazungu Kambi on Thursday claimed the government, the Federation of Kenya Employers (FKE) and Cotu had collectively agreed to maintain the minimum wage for the first time in decades.

But Francis Atwoli, Cotu secretary - general, disputed the claims, saying no such deliberations had taken place.

“This year, because of the confusion between the Cabinet secretary, workers’ unions and the Office of the President we could not (even) meet for purpose of determining the minimum wage increase for workers not covered under collective bargaining agreements,” said Mr Atwoli, shortly after the end of Labour Day celebrations at Uhuru Park in Nairobi.

Last year, the government reviewed the minimum wage by the biggest margin following President Uhuru Kenyatta’s directive to increase minimum pay by 14 per cent from 12.5 per cent in 2012.

READ: Uhuru hands workers 14pc raise in minimum wage

Cotu was this year negotiating for a 20 per cent pay increase. The government, however, maintains salary review would only be based on economic performance.

“We had discussions with the FKE and workers unions. We agreed that before this year ends, we would have ascertained economic indices and that is the time we will increase salaries accordingly,” said Mr Kambi during the celebrations at Uhuru Park, Nairobi.

‘‘I know it feels bitter… (but) we want to differentiate between celebrating the day and having a pay increase.”

Low-cadre workers have in the past looked forward to Labour Day in the hope of a pay rise to cushion them against rising inflation.

Labour PS Ali Noor earlier said the freeze was in line with the government’s austerity measures to trim the Civil Service wage bill that stands at Sh560 billion or nearly 13 per cent of the gross domestic product.

Employers have continually held that Kenya risks losing out on investments should the labour market become expensive and uncompetitive, especially in the sensitive textile and apparel industry.

“We are quite happy about the government’s position. Pay increases for workers should not be tied to cost of living only; it should reflect levels of productivity and the economy,” said FKE chairman Erastus Mwongera.

However, Mr Atwoli said: “In Kenya, we have no centre or instrument to read or measure productivity.”

READ: Industrialists warn of increase in prices after wage changes

He held that, until there is a comprehensive mechanism to gauge workers performance, pay increases would continue to be tied to the cost of living.

The umbrella union said it had sought audience with Parliament’s majority leader Aden Duale to create an “inter-ministerial committee to make the picture clear.”

The lead–up to the Labour Day celebrations witnessed supremacy battles between Cotu and the rival Federation of Public Service Trade Unions (Pusetu) over who would host the celebrations.

The matter went to the Industrial Courts where Pusetu was barred from interfering with the day’s event after a petition at the High Court to overturn the ruling failed.

Even though Cotu extended an olive branch to Pusetu by agreeing to share the platform, the latter conducted a parallel event, marching through the streets of Nairobi to mark the day.

The Economic Survey shows Kenya’s economy expanded a marginal 4.7 per cent last year from 4.6 per cent the previous year due to sluggish tourist arrivals and erratic weather’s impact on farming.

Inflation though has remained within the single-digit range over the past year.

Official data shows that workers’ earnings rose by an average of 13 per cent last year, above the average inflation rate of 5.3 per cent, due to last year 14 per cent minimum wage increase.

FKE has in the past stated that Kenya has the highest minimum wage in East African Community.

In 2011, Kenya’s average minimum wage stood at Sh5,044 but has now climbed to Sh6,475. Each region and occupation has a set minimum wage though.

A night watchman in Nairobi, for instance, is expected to earn a minimum salary of Sh10,910 per month and Sh10,115 in smaller towns like Athi River.

Meanwhile, Kenya is set to have its first national skills database by July after the delayed findings of a manpower survey are released by end month.

Mr Kambi said the findings of a 2012 manpower survey would be released this month, followed by creation of a multi-sectorial skills inventory.