Cotu differs with employers’ body on pay rise formula

National umbrella workers’ union bosses have disagreed with employers’ organisations over the method to be used in determining salary increments, in Labour Day celebrations punctuated with politics.

In a public display of anger, Central Organisation of Trade Unions (Cotu) accused the Federation of Kenya Employers (FKE), and Kenya Private Sector Alliance (Kepsa) of “misadvising” the government on how much workers should be paid.

The occasion was about celebrating workers, part of an international day set aside to recognise the contribution of labourers around the world.

But there was a spark of bitterness when FKE Chief Executive Jacqueline Mugo argued salary increments should be pegged on productivity.

Cotu Secretary-General Francis Atwoli called her a “wonderful” person when it comes to issues of labour policy, but a not good when it came to salary discussions.

Mr Atwoli’s beef was that employers were insisting on paying workers based on productivity when there is no formula in place to measure it.

“Who is misadvising the government on productivity? I have heard you talking about productivity. The government has no way of measuring productivity and so FKE cannot pretend to know how to do it.

“This lady (FKE CEO Jacqueline Mugo) is a very respectable person...but when we talk about salaries, she becomes the bad,” she told a cheering crowd at Uhuru Park.

Ms Mugo had spoken in a three-point speech where she argued for “policies that translate into job creation”, quality social climate in which labour relations are conducted as well as ways of boosting skills of workers.

“As a country, we cannot continue to discuss issues of wage increment without discussing productivity,” she told the workers at Uhuru Park.

PRODUCTIVITY
Of concern to employers, she argued, was the continuous resolve to strike whenever employers demand pay rise, saying while it was everyone’s right, the focus should be on raising output of every worker.

Her speech lasted less than 10 minutes, but Francis Atwoli turning the issue into a dramatised satire challenging the FKE boss to substantiate her own productivity at the Federation.

“If we are to be measured on productivity in what we are doing to our own families...me and her (sic), we have a shortfall. Her family will expel her...and my two wives will chase me away. Honourable ministers, I urge you to tell the President that FKE and Kepsa are misadvising the government on the so-called productivity."

He went on: "Employers argue that Kenya’s unemployment rate has remained higher than 20 per cent for decades, despite 1.2 million trained youth joining the labour market every year. Of this number, about two thirds do not get a job, a factor Ms Mugo argued pointed to low skills suiting the market."

“For us to improve on wages, our policies must be driven by productivity,” she argued.

Kepsa was not represented at the event, but Ms Mugo said these are issues the Federation would want discussed when it hosts a conference on labour issues next weekend.

However, Mr Atwoli said: “This language of productivity in Kenya cannot work. In Africa, it is only in South Africa where they have some semblance of productivity.”

President Uhuru Kenyatta in his Labour Day message admitted to a problem in skills, but promised to work with stakeholders to improve competitiveness of every worker.

This, President Kenyatta said, includes working with the private sector and training institutions to improve on skills of workers.

There were 11 Cabinet Secretaries including Ms Phyllis Kandie for Labour, who also read President Uhuru Kenyatta’s message.