yu workers seek travel ban against Indian boss

CEO Madhur Taneja. FILE 

By GALGALLO FAYO

In Summary

• The 233 workers who moved to the Industrial Court want to stop an impending sale of the company until the firm discloses to them terms of on alleged retrenchment plan.

Employees of Essar Telkom, which runs the yuMobile mobile phone network, are seeking court orders for CEO Madhur Taneja to surrender his travel documents arguing that he may flee the country.

The 233 workers who moved to the Industrial Court want to stop an impending sale of the company until the firm discloses to them terms of on alleged retrenchment plan.

The workers are also accusing Mr Taneja of harassing and threatening them against another court order issued on February 27 restraining the company from intimidating the employees.

“That Mr Madhur Kant, the respondent’s chief executive officer, do deposit his passport, visa and other travel documents in court pending the hearing and determination of this petition,” reads one of the orders sought by the employees.

They claim that Mr Taneja may leave Kenya and defeat the case against him as the head of the firm. Justice Linnet Ndolo certified the case urgent and directed it to be served on the company for hearing on March 11.

The employees further argue that a CEO of Essar Energy, a sister company, had fled the country leaving employees who have filed a similar case at the Mombasa High Court without remedy.

“In light of the attitude he has adopted to this labour dispute, there is a real apprehension on our part that he may also leave the local limits of the jurisdiction of this honourable court, never to return,” they claimed.

The employees are seeking an alternative order for yuMobile to deposit a security of Sh1.25 billion with the court, the amount they claim to be due to them from the firm in the event of retrenchment.

The employees had moved to court claiming that they are privy to the requirement by the prospective buyer that a retrenchment plan be agreed upon first.

India’s Essar will in March complete talks to sell an undisclosed stake to a strategic investor in yuMobile for $100 million (Sh8.54 billion).

READ: Essar to finalise sale of Sh8.5bn yu stake in March

The firm had said it needs the Sh8.54 billion immediately and more cash in the short term to widen its footprint in Kenya and upgrade its network from 2G to 3G — which allows for faster data speeds.