Kambi dashes workers’ hopes of pay increase

Politics and policy

Cotu secretary- general Francis Atwoli (left) and Labour secretary Kazungu Kambi during the Labour Day celebrations at Uhuru Park in Nairobi on Thursday. Photo/SALATON NJAU 

By NEVILLE OTUKI, notuki@ke.nationmedia.com

In Summary

• 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.

 

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