This archive report was first published on 23 April 2020.
On May 14, the Employment and Labour Relations Court will hear a case against the Automobile Association of Kenya (AA Kenya) over its decision to implement a 50% pay cut for all 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 making an unjustifiable and unilateral decision that aims to exploit over 500 employees.
According to the union's General Secretary, Nicholas Mbugua, the company's decision to backdate salary deductions is unfair, especially considering that it was through the workers' efforts that AA achieved a surplus of Sh93 million in the 2019 half-year results.
Mr. Mbugua noted that it is immoral for the company to focus too much on profits while disregarding the welfare of individuals who have been its lifeline without involving their representatives.
As a result of the pay cut, some 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, citing a letter to staff that advised them to utilise their NHIF in the event their dependents require any medical attention.
AA's management, however, defended the changes as 'necessary decisions to preserve jobs across the business' as the coronavirus situation is monitored.
Chief Executive Officer Francis Theuri said the company has closed about 70% of its business, effectively losing at least that share of revenue.
As a result, the company is looking into mitigation by asking banks and Wenye Magari Sacco to consider pushing forward loan repayment for its staff.
