Employers asked to implement 12 per cent wage increase

Monday, June 20th, 2022 01:47 | By
Labour and Social Protection Cabinet Secretary Simon Chelugui. PHOTO/Courtesy
Labour and Social Protection Cabinet Secretary Simon Chelugui. PHOTO/Courtesy

The Ministry of Labour has told employers to fully effect the 12 per cent minimum wage increase despite the harsh economic times.

Labour Cabinet Secretary Simon Chelugui during the association 59th Annual General Meeting (AGM) held at Lake Naivasha Resort admitted that the employers were yet to fully recover from the Covid-19 pandemic but added that the last wage review was conducted in 2018.

Chelugui revealed that he had received a letter from the Federation of Kenya Employers (FKE) warning him not to review wages as they were facing a financial crisis.

“I also received a letter from COTU demanding a 55 per cent salary increase and we looked into various issues including inflation before arriving at the 12 per cent increment,” he said.

Addressing the employers, the CS assured flower farmers, mainly in Naivasha, that their security and that of their workers was assured during the elections.

He at the same time assured the farmers that the government would shoot down the controversial land control bill.

“This is a private members bill and the issues raised like land tenure are covered by the current Constitution,” he said.

Land Bill

The Agricultural Employers Association (AEA) said some farmers had started to retrench part of their workers so as to meet the governments’ directive.

AEA chair Wilson Odoyo said some farms had resorted to redundancy in order to meet the new salary directive.

He said the association was not involved in the salary review process adding that the move would lead to heightened industrial action and job losses.

“One of the farms has already sent home over 200 workers and we are calling for consultation in future to avoid another crisis,” he said.

Odoyo added that the sector was facing many challenges with the cost of farm inputs, fuel and electricity on the rise.

Naivasha assistant County Commissioner Fidelis Babu assured farmers and their employees that the State had fully addressed the issue of security during the election period.

“Unlike in the past where there was massive voter transfer and relocation before elections, this time the situation is different,” he said.

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