Allan Odhiambo
4 December 2009
Power distributor Kenya Power and Lighting Company, faces at least an additional Sh35 million in its annual salaries expenditure bill following a ruling by the Industrial Court in favour of its unionisable employees.
The power firm has also been ordered to establish a comprehensive 12-tier salary structure for its work force, besides ensuring every worker is placed at the correct salary point according to the adjusted job groups.
The ruling followed a dispute in which KPLC's unionisable workers protested against an alleged warped job evaluation scheme that caused salary overlaps between them and their counterparts in management who had been earmarked for a 200 per cent salary raise with effect from March 1, 2007.
To press their case, the unionisable workers even moved to down their tools in 2007 prompting the Labour ministry to refer the matter to court for consideration and determination amid fears of an energy crisis in the country.
According to court records seen by Business Daily the workers, under the umbrella of the Kenya Electrical, Trade and Allied Workers Union, in their submission claimed that there were serious salary overlaps among the work force to which KPLC acknowledged.
"There were wide salary variations between employees in the same grade and at times the same qualifications coupled with the same year of service," the workers pointed out, noting that unless the matter was addressed it would deny them a chance of reaping from their efforts at the firm.
KPLC however said such changes to the wage bill could affect its financial viability at a time when it faced a myriad of challenges including the effect of the global economic downturn and knocks of foul weather that had affected power production at various hydroelectric-dams across the country.
But handing his ruling last Friday, Industrial Court Judge Stewart Madzayo said though he appreciated the concerns raised by KPLC the welfare of the aggrieved workers was equally important.
He argued that KPLC had the financial ability to accommodate the new salary structure that would help overcome the problem among unionisable employees as it did for the management.
"This is a court of equity, and equity follows the law, in this case it must balance its decision to meet both parties interest," he said, "Any profit made by the respondent company in its declaration must be shared equally with the unionisable employees,"
The judge ordered that employees earning more than the maximum of their present grade shall retain their salaries as personal and be moved to grades in which their salaries fall with adjustment of house allowance, applicable variable allowances continuing to benefit from all future collective bargaining agreements (CBA).
"The employees whose salary will be lower that the minimum salary of his/her present grade must be adjusted to the new minimum salary," the court ruled.
It further set the minimum basic salary for the lowest union grade at Sh13,000 per month with effect from January 1, 2009.
"The company shall pay the arrears in two instalments within sixty days from the date of the award," Justice Madzayo said as part of his 32-page ruling.