Increasing globalisation and convergence within the telecommunications industry is driving the Kenyan government and trade unions to partner in seeking effective policies to govern the industry.
As one of the fastest growing sectors with an increasing number of employees within the Kenyan economy, the telecoms industry demands constant review of the policies governing it. Stake-holders say current initiatives shall seek to address wage and investment guidelines for the industry.
“The continuing trend of privatisation of enterprises including Telkom Kenya, the expansion of the mobile sector, the outsourcing of vital services and the proliferation of telecoms units present both a challenge and a danger to employers,” said Mr Francis Atwoli, the Secretary-General of the Central Organisation of Trade Unions (Cotu).
As human capital emerges as one of the most valuable assets within the communications industry, the unions hope to influence policy governing the industry and establish guidelines for employment in the fledgling industry.
In particular, the Communications Workers Union of Kenya (COWU) hopes to push employers within the telecommunications industry to allow their employees to join unions and streamline operational standards for companies to safeguard workers rights.
“The total employment in the industry has increased due to the liberalisation of the sector.
“The challenge is to craft policy that will create a knowledge economy for the country while addressing the issues that arise with that growth,” said Bitange Ndemo, Information Permanent Secretary.
Dr Ndemo said the need for policy review was especially pertinent as the country had started its drive to become a global outsourcing centre by 2015.
Over 200,000 new jobs are expected to be created in the new field within the next few years.
But ever since the country embarked on its liberalisation wave in 1998 with the implementation of the Kenya Communications Act, the industry has struggled with issues revolving around investment and employment.
Challenges surrounding the sharing out of investment opportunities has also led the Government to review its investment policies.
Currently, companies investing in the sector are expected to reserve 30 per cent of their share-holding for local partners.
The Government will be reviewing that rule following the difficulties it faced with the licence for the third mobile operator, Econet, whose service roll out was largely delayed due to share-holder issues.
“It’s a big strain on companies. We are considering changing that rule so that investors can either pay upfront for investments or they can pay later and explore options such as the stock market to raise funding,” said Dr Ndemo.
Telkom employees
Among the most famous cases where government and unions in the telecoms industry clashed was during the retrenchment of Telkom Kenya employees, when over 17,000 workers were axed following France Telecom’s buy-in.
The firm’s staff numbers currently stand at about 3, 100 workers, down from the 17, 288 workers that were on the firm’s payroll in February, 2007.
The lay-offs translated into annual savings of Sh4.2 billion in labour costs.
Current challenges that unions and the government are set to tackle are the employment of expatriates, wage issues, and integrating welfare issues into policy.
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