NHIF strike at port hits trade in East Africa

KPA workers

Dock Workers Union Secretary-General Simon Sang is carried shoulder-high by striking Kenya Ports Authority (KPA) workers at the KPA yard in Mombasa on July 2, 2015. 

Photo credit: File | Nation Media Group

What you need to know:

  • On Wednesday, a Ugandan representative at the port said importers and exporters from his country would stop paying storage charges after two days because they were not responsible for the delays in clearing cargo.
  • Mr Hamisi Lalo, a driver, said he loaded his truck with rails he was to transport to the China Road and Bridge Construction camp site but was stopped at the gate.
  • At the Likoni channel, where about 160 workers are also on strike, the Kenya Ferry Service Company’s unionised members kept off their work stations.

A workers’ strike paralysed the clearance of cargo at the Mombasa port for the second day running yesterday, disrupting the supply of goods to Uganda, Rwanda, South Sudan, Burundi and the Democratic Republic of Congo.

The effects of the strike called to protest new NHIF rates are likely to be felt in the rest of East Africa because no goods can be cleared for import or export.

On Wednesday, a Ugandan representative at the port said importers and exporters from his country would stop paying storage charges after two days because they were not responsible for the delays in clearing cargo.

Yesterday, Kenya Ports Authority Managing Director Gichiri Ndua said the authority had lost over Sh100 million in handling fees in the 36 hours that unionisable employees had boycotted work. This estimate does not include the cost shipping companies incur to run their vessels.

Fifteen ships had berthed at the port waiting to be loaded or to unload their cargo while seven others were waiting to berth. With the daily cost of running one vessel ranging at between Sh5 million and Sh10 million, depending on its size, the losses from the strike are massive. The Mombasa port also serves landlocked countries in the region.

'LITTLE SIGN OF ACTIVITY'

“It’s rather unfortunate that the strike started with our workers and yet even members of the mother union had not started the boycott. As you can see, we decided to deploy our management staff to do the work and we hope to resume fully by tomorrow,” Mr Ndua said yesterday.

Port users were on Tuesday and yesterday told to stay away, with clerks and truck drivers saying they had spent the two days trying to have their trucks loaded to no avail.

Mr Hamisi Lalo, a driver, said he loaded his truck with rails he was to transport to the China Road and Bridge Construction campsite but was stopped at the gate.

“This is unfair because my boss is waiting for me and I am stuck here because of the strike. We have incurred huge losses because I was supposed to come back for another load,” he told journalists at the container terminal.

Although workers at the management level had been deployed at the terminal, there was little sign of activity in most of the berths and Mr Ndua said if the workers continue to stay away, the port’s management would hire replacement workers.

WORKERS 'NOT CONSULTED'

“We are telling our employees that KPA has not had an engagement with them in which we have differed and, therefore, there is no justification for them to withhold labour,” Mr Ndua said.

However, Dock Workers Union Secretary-General Simon Sang said workers were not consulted when the new NHIF rates were introduced. The first deductions were reflected in the June salaries.

“Our strike is legal because it kicked off after the expiry of the seven-day notice. What we are stressing is that the rates cannot be based on the gross salary and they must stop the deductions with immediate effect,” he said.

At the Likoni channel, where about 160 workers are also on strike, the Kenya Ferry Service Company’s unionised members kept off their work stations.

Led by their shop stewards, members sat in different groups on the island and on the mainland Likoni channel crossing points discussing the strike.

“We will not go back until the government meets our demand of stopping the deductions and refunding our already deducted money,” said one shop steward, who requested for anonymity.

Management staff took up the marshalling of commuters and traffic on both sides of the crossing for the second day.

UNIONS: SUSPEND DEDUCTIONS

Meanwhile, learning activities in Mombasa Country could be paralysed starting today after the Kilindini branch of the Kenya National Union of Teachers (Knut) announced that its members would start boycotting classes to push for the reduction of the health insurance rates.

Branch Executive Secretary Dan Oloo said teachers would stay away from work until the new NHIF rates are reduced.

“One cannot wake up one day and decide to deduct your salary without consulting you. No going to class until our demand is met,” he said. He also demanded that the deductions be based on basic, not gross, pay.

Mr Oloo said Knut had resolved to join other unions in the strike to oppose the rates.

“How can you use the same style to deduct from those earning less than Sh35,000 and those earning over Sh100,000 a month?” he asked.

On Tuesday Trade Union Congress Chairman Tom Odege, Secretary-General Wilson Sossion and Deputy Secretary Charles Mukhwaya said the deductions must be suspended and the money already deducted refunded before unions could return to the negotiating table.

Reported by Gitonga Marete, Mwakera Mwajefa and Brian Ocharo.