Apex trade union calls for resignation of Kenya airways Board, CEO
Nairobi, Kenya (PANA) - The Kenya umbrella workers body, the Confederation of Trade Unions (COTU), and two civil aviation workers’ unions Sunday called for the immediate resignation of Kenya Airways chief executive officer and senior managers, citing mismanagement.
This comes two days after the loss-making airline released its half-year results for 2020 where it reported losses of up to $132,274.
The company’s Chief Financial Officer Hellen Mwariri attributed the losses to reduced passenger traffic the airline had witnessed since the outbreak of the e coronavirus (COVID-19) pandemic.
Chief Executive Officer Allan Kilavuka painted a gloomy picture, saying the airline could lose as much as $647,499 due to the effects of the pandemic.
On Sunday, COTU called for the resignation of Kilavuka and senior managers.
COTU made the call at a joint press conference with the Kenya Airline Workers (KAWU) Union and Kenya Airline Pilots Association (KAPA).
COTU accused airline's board chairperson Michael Joseph and Kilavuka of condoning inefficiency.
COTU Assistant Secretary General Ernest Nadome said the resignations would pave way for investigations at the airline which has been sinking into losses since 2004.
“The investigative agencies such as Directorate of Criminal Investigations, Ethics and anti-corruption commission should come in because what is happening at KQ borders on corruption that the board should be able to explain,” said Nadome.
The trade union also hinted at the possibility of instructing its members to down their tools.
This is to stop a retrenchment process initiated by the airline’s management with the aim of reducing its wage bill.
The retrenchment plan is part of a strategy put in place by the national carrier to survive a slowdown triggered by the coronavirus pandemic which has led to a decline in passenger traffic.
“We cannot accept this as workers. As COTU, we are ready to support the workers in any way even if it is downing tools,” Nadome added.
KAWU Secretary-General Moses Ndiema said after accepting a 70 per cent pay cut hoping that the situation would improve, Kenya Airways felt the current situation was unacceptable.
Kenya Airways has embarked on a phased restructuring targeting at least 1,500 workers.
Employees have taken a 70 per cent pay cut since the company said it could not sustain the monthly wage bill estimated at I billion.
Though generally, referred to as national carrier, the airline is public-private partnership on which the government has 48.9 per cent.
KQ Lenders Limited 2017 Limited (owned by banks) has a 38.1 per cent, with Dutch airlines, KLM, owning 7.8 per cent.
After several bailouts by the government, the airline's bid to convince the government to takeover are yet to bear fruits.
-0- PANA DJ./RA 30Aug2020
