Forget about pay rise, workers told
What you need to know:
- Federation of Kenya Employers Tuesday declared that its members will not implement changes to wages that might be directed by the government during this year’s Labour Day.
- The Federation has asked the government not to announce any changes this year, citing increasing cost of labour.
- FKE executive director Jacqueline Mugo said reason must prevail, as employers are already burdened with a huge wage bill and high cost of production.
Employers have warned that workers should not expect any increase in their wages in 2014.
Their declaration by Federation of Kenya Employers Tuesday that its members will not implement changes to wages that might be directed by the government during this year’s Labour Day could set the stage for confrontation with workers’ unions.
Central Organisation of Trade Unions has urged the government to increase the minimum wage by 20 per cent. It has been a tradition for the government to announce new minimum wages during Labour Day celebrations every year.
Last year, President Kenyatta announced a 14 per cent increase, which employers opposed, saying, it was above the 4.6 per cent Gross Domestic Product Growth rate.
The increase saw the minimum wage rise from Sh11,995 to Sh13,674, which the President said would improve fair compensation and ensure an environment conducive to investment and job creation.
The Federation of Kenya Employers has asked the government not to announce any changes this year, citing increasing cost of labour.
The employers complained that the trend has been the same since 2010 when the government awarded double digit increments against single digit growth and inflation rates.
“Employers, therefore, do not expect and will not support any announcement on wages this year,” said FKE national chairman Erastus Mwongera.
Speaking ahead of this year’s celebrations, the employers said the current minimum wage is the highest in the East African region.
He said any further changes must follow a legislated process and the results of such must justify any increase.
Terming the current wage bill too costly and unsustainable for the employer, FKE argued that parties in the labour market agreed several years ago that any changes must follow negotiations, which the government has failed to honour.
FKE executive director Jacqueline Mugo said reason must prevail, as employers are already burdened with a huge wage bill and high cost of production.
“It is time for us to stop and address this issue for what it is; we must find out what is causing pressure on the purchasing power and in the pockets of the ordinary Kenyan.
To keep chasing the minimum wage is a self-defeatist mechanism; it is not the answer to this issue,” she said. “If you keep doing that, you keep making Kenya less competitive,” she stated.
Contacted Cotu secretary-general Francis Atwoli termed FKE demands a display of a “slavery mentality”.
“FKE should not support indirect slavery because paying somebody a wage that he cannot live on is indirect slavery, leave alone exploitation,” he said.
“If that is the new trend in Kenya the world is watching …but as Cotu, we are asking the government to adjust the minimum wage up to 20 per cent,” he said.
