Orlando Lyomu, CEO Standard Group
Kenya Union of Journalists press release on non-payment of salaries and exploitation of staff by Standard Group Limited
December 30, 2022
Today marks the seventh day after the Kenya Union of Journalists (KUJ) issued a strike notice to Standard Group Limited over among others, non-payment of salaries, remittance of Sacco savings and statutory deductions. This is a violation of labour laws and the Constitution.
All the above have serious implications for staff who are on the verge of losing their savings in the Sacco and are likely to face difficulties in future when applying for some vital documents.
The company cannot hide behind the post Covid19 effects, since the violation of workers’ rights started before the pandemic. The company used dubious means to remove staff from the union in order to expose them for exploitation. In addition, the company declined to implement some clauses of CBA, particularly payment of Leave Allowance.
These paved the way for the violation of workers’ rights and now non-payment of salaries that has seen staff owed three-months salary arrears, something that the management has refused to address or communicate to the staff.
This is inhuman and demonstrates impunity as staff have for the past three months struggled to meet their financial obligations in the wake of the soaring cost of living being experienced across the country. The staff have been deprived of dignity, especially during this festive season where families enjoy the fruit of their hard labour.
This insensitivity and don’t care attitude has been going on for three months, and to add salt to the injury, the management has unilaterally decided to chop the salaries of staff in total disregard to the Employment Act that protects salaries of staff from unlawful deductions. The company only 80 per cent of staff salaries for the month of October, and kept quiet about the remaining 20 per cent.
Under Article 41 of the Constitution, all employees are entitled to fair labour practice but SGL has over the past few years demonstrated that the rights of employees do not matter. It is in the public knowledge that SGL arbitrarily enforced pay cuts at the height of Covid-19 while other companies followed due process. This was overturned by the court and SGL was told the deducted money will be treated as a debt, pending the determination of the matter.
As if this was not enough, the company went ahead to suspend pension to punish staff further, and when it was reinstated, the company altered the scheme to the disadvantage of the staff.
The company has also been dragging its feet on pending Collective Bargaining negotiations to improve terms and conditions of service for the staff for a year now. In view of the above, KUJ issued a 14-day strike notice on December 23 and is calling on the staff to withdraw their labour from January 6 in the event our demands in the strike notice are not met.
Erick Oduor
Secretary-General
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