Private sector players are warning that the rising cases of labour unrests in the country's public sector will push up the rate of inflation if not managed.
Through their lobby group, Federation of Kenya Employers, the private sector players want the government to hold off any pay increments to workers unless it does a clear cost-benefit analysis of any wage increments.
The public sector is currently experiencing tension especially in the county governments, teachers and sugar sector. Nurses and civil servants have also threatened to strike.
"The demands for higher pay wages are in the double digits and far exceed the inflation rate which is at a single digit. The demands are also not in sync with the level of the productivity in the country," FKE executive director Jackline Mugo said on Friday.
Employers are cautious that the demands may spread to the private sector which may see their cost of doing business rise. "It is important to note that constantly increasing wages at the expense of productivity will lead to a surge in inflation which will render the sporadic pay increases meaningless as industry will be forced to pass on the added costs to the consumer," she added.
They have called on the government to engage the unions in objective dialogue to address the strikes issue and the unions to show how they intend to promote productivity amongst their members.
"Some unions are on the record opposing performance management mechanisms introduced by employers,"FKE said. Mugo said that employers are not opposed to wage reviews, if matched by improved productivity.
FKE members, however, are yet to implement the 14 per cent wage increment announced by President Uhuru Kenyatta on Labour Day. The employers say the new pay rates have not been gazzetted yet and therefore cannot effect it. The lobby group also criticised the County Governments leadership and extravagant spending.
"The expected growth targets will not be realised with the kind of governance and expenditure fiasco we are currently witnessing. Employers urge the government to undertake deliberate and serious efforts to address the emerging challenges to spur economic growth," said FKE chairman Erastus Mwongela during the press briefing.
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