Wednesday, March 23, 2016

Tuskys staff costs rise after pay raise deal with union

Corporate News
Tuskys workers protest over pay in 2013. PHOTO | FILE
Tuskys workers protest over pay in 2013. PHOTO | FILE 
By DAVID HERBLING, hdavid@ke.nationmedia.com
In Summary
  • Tuskys' 4,200 unionisable employees also secured higher housing, transport allowances, and overtime pay, according to the fresh two-year collective bargaining agreement backdated to March 2015.

Tuskys Supermarkets is facing higher staff costs after the retailer signed a fresh pay deal with workers who will now receive an eight per cent wage rise in the first year and a similar increment in the second year.
The family-owned retail chain’s 4,200 unionisable employees also secured higher housing, transport allowances, and overtime pay, according to the fresh two-year collective bargaining agreement backdated to March 2015.
Other benefits are maternity, paternity, sick and annual leave days. The new pay deal succeeds the maiden salary agreement signed in December 2013 after Tuskys workers went on strike demanding their right to join a trade union and harmonise their pay with basic minimum wages.
The pay deal was signed on Friday last week between the Kenya Union of Commercial, Food and Allied Workers (Kucfaw) and Tusker Mattresses Ltd, Tuskys’ holding company.
“The company (Tusker Mattresses Ltd) and the union (Kucfaw) meeting in a free heart and voluntary association agree and enter into the foregoing,” reads the labour contract seen by the Business Daily.
The pay increase in the new deal is, however, lower to the March 2013-2015 agreement which gave workers a 10 per cent rise in the first year followed by 11 per cent in the second year.
“This is the best we could squeeze given the current situation. We negotiated this deal for more than nine months and there have also been leadership issues in the company,” said Kucfaw secretary-general Boniface Kavuvi.
The pay pact comes at a time when Tuskys is embroiled in a family feud over the ownership and running of the top-tier retailer ranked second in terms of revenue behind Nakumatt.
The business is run by seven siblings including George Gachwe (managing director), Stephen Mukuha, Yusuf Mugweru, John Kago, Sam Gatei, Mary Njoki and Kenneth Mwangi Njeri.
The grandchildren of the late Tuskys family patriarch Joram Kama — the retailer’s founder — last month dramatically sacked and evicted the then CEO Dan Githua out of office.
Newly-employed cashiers at Tuskys currently earn a basic monthly pay of Sh24,898 and an eight per cent pay rise will see them get Sh26,889 in the first year and Sh29,041 in the second year.
Tuskys workers are now entitled to free accommodation from the retailer or a house allowance equivalent to 15 per cent of basic wage plus Sh1,500, together with commuter allowance of Sh2,850 per month.
The workers also secured 23 leave days every year, paid sick leave of up to 40 days annually, three-month maternity leave and 14-day paternity leave.

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