Governor Erick Mutai has questioned the motives behind an international company's decision to announce plans to retrench over 2,000 workers just months after establishing a base in Kenya.
Mutai stated that the Sri Lankan firm, Browns Plc, was targeting workers unjustifiably, just months after acquiring tea plantations in Bomet, Kericho and Kiambu counties from Ekaterra Plc and James Finlay Kenya.
He rallied behind the workers and called for the immediate halting of the retirement plan being pushed by the firm.
“We have engaged the management of the Browns Plantations company with a view to having them review the move, retain the workers, and employ more in the near future in place of the machines that were introduced a few years ago,” Dr Mutai said.
The firm stated that it was offering a voluntary early retirement package under a collective bargaining agreement (CBA). The package included severance pay equivalent to 23 days’ pay for each completed year of service.
Browns, Chief Executive Officer (CEO), Rajiv Bandaranayake, stated that as per the signed CBA, one-way bus fare would be provided for workers. The CBA will also require employees to prorate pay for outstanding leave days.
The company stated that it will provide workers with training in financial management and entrepreneurship, as well as offering them psychosocial support.
It also said it would provide an extension of medical support for employees and their dependants within existing medical covers, upon formal request and approval by the Chief Executive Officer.
“Extended stay in the company housing upon formal application and approval by compliance with the company’s housing policy to accommodate employees and avoid disrupting the academic calendar,” Mr Bandaranayake said, will also be offered by the company.
The Kenya Plantation and Agricultural Workers Union and local leaders also condemned the company's decision to lay off workers.
The union demanded answers on the retrenchment plan, claiming that it was hurried and illegally implemented without consulting or involving the union.
“The Collective Bargaining Agreement (CBA) is very clear in clause (31) on retirement age; at no time have the parties negotiated on voluntary early retirement to be carried out in Brown Plantation East Africa” the union said.
