Economy

Uchumi workers plan strike to push for better salaries

Uchumi-shopping

Shoppers at an Uchumi outlet in Nairobi. Workers have given notice for a stoppage over pay. FILE

Uchumi Supermarkets, one of Kenya’s largest retail brands, could in two weeks ground to a halt if employees follow through on their warning to down tools over demand for higher pay.

The Kenya Union of Commercial, Food and Allied Workers (KUCFAW) has issued the strike notice dated October 8 to pile pressure on the management to meet their demands.

“We hereby serve you with a twenty one (21) days notice of our intention to withdraw labour at the expiry of the said notice,” it reads in part.

In May, the Nairobi Securities Exchange listed supermarket entered a collective bargaining agreement (CBA) committing to raise the basic minimum wages for its employees by 10 per cent.

Uchumi has a total of 28 outlets with most of them in Kenya. The firm has about 1,000 unionisable employees in the country alone.

It has entered different CBAs in each country according to KUCFAW.

A strike would be a major blow to its business as it moves to expand after posting a net profit of Sh357 million in its first half with sales of Sh14.3 billion.

“This is to inform you that failure to address these grievances will leave us with no option but to withdraw labour without any further reference to you,” says the notice.

KUCFAW, however, said options for dialogue were still open and that they would meet Uchumi stakeholders on Thursday for deliberations.

Uchumi CEO Jonathan Ciano did not wish to comment on the issue saying he was yet to peruse the particulars of the notice.

“I will not comment. I have not received any notice for now,” he said Tuesday on telephone from Kigali in Rwanda.

The CBA for local branches provides that the pay raise be back-dated to July last year. A house allowance of 25 per cent of gross pay is part of the package alongside a 15 per cent transport allowance.

KUCFAW is now accusing the supermarket’s top officials of reneging on the agreement, prompting them to issue a strike notice. It has also accused the retail chain of failure to pay workers for over time.

The unionisable employees claim only a few members in certain job categories have had their pay raised.

“Many Uchumi employees are still being paid below the basic minimum wage,” KUCFAW secretary- general Boniface Kavuvi said in a telephone interview, adding that low salaries were in violation of the newly enforced minimum wage law which the State directed be raised by 14 per cent.

Under the new CBA, the lowest paid Uchumi worker, a cleaner in category one, was to pocket a basic pay of Sh8,800, excluding house and transport allowances.

Accounts clerk and cashiers, who are the highest paid employees amongst those engaged directly in running the supermarket, belong to category seven and were entitled to a take-home of Sh19, 500. But Mr Kavuvi says Uchumi has yet to honour the deal.

The Kenya Federation of Employers (FKE), which represents employer bodies such as Uchumi Supermarkets, did not comment on the issue.

“We have not been informed of any dispute by our member (Uchumi). No comment for now,” FKE chairman Erastus Mwongera said.

KUCFAW, which represents supermarkets such as Uchumi, Nakumatt Holdings and Tuskys claimed that Uchumi employees earn less compared to the rest of the stores.

On top of Sh8,730 pay, the lobby said, the lowest cadre employee of Nakumatt is entitled to a house allowance of 15 per cent of basic pay plus Sh2,500, excluding their transport.
Nakumatt’s CBA was struck in May last year.

KUCFAW said it plans to move to court for arbitration over several items. They include leave travel allowance, night shift allowance, long service increment and salary advance.