The Communication Workers Union of Kenya has failed to prevent retrenchments occurring at Telkom Kenya.
Both Telkom Kenya and the Union have reached into an agreement to retrench 400 employees in July 2011 in the latest round of restructuring to trim its payroll and increase efficiency.
The retrenchment of 400 employees included 330 union members and 70 managers.
A joint memo dated 23 June 2011 by Telkom Kenya Deputy CEO Jane Karuku and COWU Secretary General Benson Okwaro says: “An agreement was reached regarding the redundancy of 400 employees intended to be carried out during the month of July 2011.”
As part of the deal, Telkom Kenya will pay the retrenched employees a severance of one month’s salary for each year worked, one month’s notice and payment of leave days earned.
They will also be paid overtime and off-days earned, outstanding medical, subsistence and hardship allowance claims. “For us to be profitable, we need a lean and active operation,” says Telkom Kenya CEO Mickael Ghossein.
France Telecom has been forced to slash the Telkom Kenya workforce by about 16 000 employees in order to cut costs and penetrate the highly competitive mobile market.