Sunday, September 28, 2014

Kambi accused of defying court order in NSSF board row

Politics and policy

Labour secretary Kazungu Kambi. PHOTO | FILE | NATION MEDIA GROUP 
By LYNET IGADWAH, ligadwah@ke.nationmedia.com
In Summary
  • Mr Kambi removed Central Organisation of Trade Unions (Cotu) secretary- general Francis Atwoli and Federation of Kenya Employers (FKE) executive director Jacqueline Mugo from the NSSF board on July 18 on grounds that they had served more than two terms.
  • President Uhuru Kenyatta on September 14 signed into law amendments made by parliament in late August blocking the fund’s board from meeting without the workers’ and employers’ representatives......................................................................................

Labour secretary Kazungu Kambi is on the spot for defying a court order to reinstate two labour union and employer representatives to the National Social Security Fund (NSSF) board of trustees.
Mr Kambi removed Central Organisation of Trade Unions (Cotu) secretary- general Francis Atwoli and Federation of Kenya Employers (FKE) executive director Jacqueline Mugo from the NSSF board on July 18 on grounds that they had served more than two terms.
The Industrial Court suspended Mr Kambi’s gazette notice on July 21, reinstating the two. Ms Mugo said the Labour minister has disregarded the court order to date, with the NSSF board holding meetings without sending invitations to FKE and Cotu.
“The argument used is that the Cabinet secretary has not re-gazetted the FKE and Cotu representatives to the board after the court nullified this gazette notice,” she said at a press conference in Waajiri House in Nairobi last Friday.
President Uhuru Kenyatta on September 14 signed into law amendments made by parliament in late August blocking the fund’s board from meeting without the workers’ and employers’ representatives.
The amendments provide that the NSSF will not have a quorum in the absence of trustees representing the two parties. The workers are represented in the NSSF board by a nominee of the Cotu and the employers by the executive director of their lobby —FKE.
According to the Parliament, the amendments will put tighter controls and ensure prudent management of the large amount of money NSSF is expected to handle with the roll out of the newly proposed workers’ contributions.
Ms Mugo said the ministry and NSSF have refused to invite them to board meetings, “which creates an environment that beckons dictatorship”. “If unchecked, the alarming state of anarchy that is slowly being introduced into the labour sector will throw it into complete disarray,” she said.
The employers said Mr Kambi was setting a bad precedent for labour relations by undermining the roles of Cotu and FKE. “It also goes against the Industrial Relations Charter entered jointly by the government, employers and workers which recognises the right to freedom of association,” said FKE board member Gilda Odera.
The NSSF projects it will collect Sh118 billion annually from contributions, with the estimated value of total assets under its control expected to stand at Sh742 billion once it becomes a pension scheme.
The implementation of the NSSF Act 2013 is expected to rope in all workers in the formal and informal sectors, spurring growth. However, roll-out has been delayed due to court injunctions by individual unions and employers

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