Kenya – Kenyan workers who are working in power generation have threatened to strike after it was announced that as many as 2,000 staff or 20% of the company’s workforce will be laid off.
They are protesting against Kenya Power’s plan which has been decided upon as the company wants to cut the cost so that it can make up for lost revenue. The company is looming under desperate need to bounce back with a stronger financial situation which is getting difficult every passing day.
There was a major loss in revenue after a 15% reduction in electricity tariff back in January this year. However, the plan to cut down the workforce came into existence in January last year but looking at the citation, it got delayed.
The Acting Managing Director Rosemary Oduor stated, “the company, because of low attrition rate, has an aging and expensive workforce resulting in staff cost growing at nearly twice the rate of revenue growth”.
The workers were upset over the sudden declaration of the plan and they talked to the local media about it where they said that they did not like how management failed to consult with them prior to adopting the plan.
The protesters are a combination of the Kenya Electrical Trades and Allied Workers Union (Ketawu), which make up for the majority of the workforce. Another factor that is disturbing them is authorities considering replacing older staff by employing 830 younger staff. Kenya Power had shared its plans about the same and said that they are thinking about it as younger staff will be available at lesser expense than those who come with experience.