Uchumi employees resume duty

Business Daily Kenya:  Fred Aminga and Murimi Mutiga @PeopleDailyKe Uchumi Supermarkets employees yesterday stormed the retailer’s headqua...

Business Daily Kenya: 

Uchumi supermarkets stores. Photo/File

Fred Aminga and Murimi Mutiga @PeopleDailyKe

Uchumi Supermarkets employees yesterday stormed the retailer’s headquarters protesting delay of their May and June salaries. To stem the unrest, chief executive Julius Kipngetich met with some of the workers representatives who had stormed the headquarters and signed a back to work agreement.

“We have now signed an agreement and they have committed to pay May salaries by tomorrow (today) and June salaries by July 14,” said Bonface Kavuvi workers union secretary general.

While there will be no victimisation, the agreement says that all employees must go back to work immediately. The company’s unionisable workers, estimated at 2,800, had advised the retailer to pay them by Monday as promised lest they down tools. “The salaries will hit the employee’s accounts from Monday.

We regret the further delay and request that you bear with us,” read a notice posted on the company’s notice boards June 30, 2017. Union secretary general Bonface Kavuvi told People Daily the workers took the industrial action after the troubled retailer failed to honour this promise.

“This led to disruption of business in Nairobi, Eldoret and Mombasa,” he said. According to Mombasa workers union shopsteward George Oyugi, the management had refused to engage the workers in talks and instead threatened them with dismissal letters.

The workers are also demanding remittance of statutory deductions among them National Hospital Insurance Fund and National Social Security Fund. “For the last year, our pension money has not been paid. Overtime is also not being paid.

Instead of management explaining the problem to us, they are threatening us with sacking letters,” he said. The troubled retailer is currently in the market for credit to pay salaries and ease logistics and operational quagmire, with advanced plans to attract a suitable suitor among three investors who can pump in cash into the business. The retailer is also waiting to utilise a pending government loan which is yet to be released.

The post Uchumi employees resume duty appeared first on Mediamax Network Limited.

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