This archive report was first published on 22 June 2020.
On May 14, the Employment and Labour Relations Court summoned the Automobile Association of Kenya (AA Kenya) over its decision to implement a 50% pay cut for all its employees for the months of March and April.
The Kenya Long Distance Truck Drivers and Allied Workers Union took the matter to court, accusing AA's management of effecting an unjustifiable and unilateral decision that aims to exploit over 500 employees.
According to the union's General Secretary, Mr. Nicholas Mbugua, it was unfair for the company to backdate salary deductions in the guise of measures following the COVID-19 pandemic.
On Monday, May 20, the court served a notice to AA management, stating that if no appearance is made by themselves, their advocate, or their legal representative, the court shall proceed to mention and determine the case, regardless of their absence.
Mr. Mbugua noted that it was through the workers' efforts that AA achieved a surplus of Sh93 million in the 2019 half-year results.
He questioned the company's decision to focus on profits while disregarding the welfare of individuals who have been the company's lifeline, without involving their representatives.
Some of the workers are expected to proceed on unpaid leave from next month if the situation does not change in the next 10 days.
The union also challenged AA's decision to immediately remove all dependants from the staff medical cover.
AA's management, however, defended the changes as 'necessary decisions to preserve jobs across the business' as the coronavirus situation is monitored.
According to AA's Head of Human Resource and Administration, Ms. Linda Kenelwa, employees set to take unpaid leave would receive letters of notification.
Chief Executive Officer Francis Theuri said the company has closed about 70% of its business, effectively losing at least that share of revenue.
