Investors protest KQ ruling in workers row

Investors have protested against a court ruling directing Kenya Airways to reinstate 447 sacked workers.

The ruling failed to take into consideration the employers’ perspective and might end up having negative consequences on the performance of businesses, Kenya Association of Manufacturers chief executive Betty Maina said.

“Courts should appreciate that employers are under distress before making such decisions,” said Ms Maina.

In a statement, the Kenya Private Sector Alliance said that it would soon engage the Judiciary on rulings which have an effect on the labour industry and investments in the country.

The discontent among industry players shows the extent to which the ruling could affect labour relations.

However, the Central Organisation of Trade Unions welcomed it, saying it would compel employers to engage workers before sending them off in retrenchment plans.

“It is a warning to all employers that they should enter into negotiations with workers to ensure a smooth transition during retrenchment,” said Cotu secretary-general Francis Atwoli.

The management of Kenya Airways on Tuesday moved to comply with the court order directing it to reinstate the workers, who were  retrenched in a staff rationalisation programme in September.

But just moments after the company issued them with reinstatement letters, the former employees rejected the recall terms. They opposed a bid to send them on compulsory leave pending redeployment.

“The employees…will be sent on leave awaiting redeployment,” a statement signed by managing director Titus Naikuni read in part.

This forced the union to enter into fresh negotiations with the company.

“We expect them to call the workers for the new letters by mid-morning tomorrow,” said Aviation and Allied Workers Union chairperson Perpetua Mponjiwa.

In his ruling on Monday, Industrial Court Judge James Rika said the retrenchment was unprocedural and lacked consultation. The airline said it took the decision as a cost-cutting measure after it reported a Sh4.7 billion loss in the six months to September 2012.