13 February 2014

Kenya: Unions Welcome Karuturi Receivership Placement

Nairobi — CENTRAL Organization of Trade Unions (COTU) welcomed the appointment of new managers appointed to rescue troubled flower firm, Karuturi.

COTU Secretary General, Francis Atwoli, expressed satisfaction over the new managers saying the union supported a management that honored the needs of their workers.

He said this is an issue the new management has vowed to look into.

“We are supporting the receivership because the current management has been unable to pay the workers. The new managers have agreed to pay the workers' salaries up to December and those are the people we want,” said Atwoli.

Karuturi has been placed under receivership after its inability to pay salaries and suppliers for about to three months.

It has been put under the management of Kieran Day and Ian Small of financial services firm The Business Advisory Group who will be charged with bringing the company back to profitability while ensuring the payment of wages and employee welfare.

The company has been dogged by other problems including tax evasion and labour strikes due to alleged deplorable working conditions.

The flower firm has its mother company in India and other branches in Ethiopia and United Arab Emirates.

It employs 4 000 workers and exports 1.5 million cut-roses per day to Europe at its peak.

Its farm in Naivasha is home to 40 species of roses.

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