Karuturi workers paid arrears, says receiver
Employees of the Karuturi flower farm in Naivasha spraying the flowers before the company was put under receivership. Receiver manager Ian Small now says since he took over the managerial work, the company had registered great success and that sixty per cent of the outstanding money arrears owed to thousands of workers has been paid. PHOTO/FILE
What you need to know:
- Receiver manager Ian Small said since he took over the managerial work, the company had registered great success.
- Mr Small revealed that the farm was still economically viable and that he was optimistic he would turn around its fortunes.
- Area MP John Kihagi said they would follow up the Karuturi case to ensure workers did not suffer and they were paid their dues in full.
Sixty per cent of the outstanding money arrears owed to thousands of workers at the Karuturi flower farm in Naivasha has been cleared.
Speaking after a visit by a group of six parliamentarians newly appointed receiver manager Ian Small said since he took over the managerial work, the company had registered great success.
“In the short time that I have been here, we have been able to clear more than sixty per cent of the outstanding arrears owed to workers,” he told the MPs.
The MPs from the Labour, Sports and Social Welfare committee were led by their chairman David Were,
Mr Small revealed that the farm was still economically viable and that he was optimistic he would turn around the fortunes of the one-time flower giant company that has been placed under receivership owing to financial woes.
ASSURED WORKERS
On his part, Mr Were assured the workers that they would be paid all their outstanding dues, adding that they had made an agreement with the new managers.
“We will ensure that you don’t suffer, even after the management of the farm changed hands,” Mr Were told the workers.
He revealed that it was mismanagement that led to the flower farm incurring huge debts.
“It seems the management was not ploughing back enough money to successfully run the company, ” he added.
The committee noted that more than 2000 workers had been absorbed back into the farm; with the fate of a further 200 hanging in the balance.
REDUNDANT WORKERS
However, the company’s management maintained that only 26 workers had not been taken back as their former positions in the company had become redundant.
Kipipiri Member of Parliament Samuel Gichigi said they were going to look at the labour and employment laws to ensure that workers were always protected in case a company went under.
“At the moment the workers here are not in the preference list of creditors,” said the legislator.
Area MP John Kihagi who hosted the parliamentary team said they would follow up the Karuturi case to ensure workers did not suffer and they were paid their dues in full.
“This is just but the beginning but we shall ensure that the plight of the workers is fully addressed,” said the Naivasha MP.
