By LUKE ANAMI and ISAIAH LUCHELI

As workers worldwide mark this year’s Labour Day today, economists argue Kenya is in its worst employment crisis since independence in 1963.

With a population of about 45 million people and unemployment standing at more than 10 per cent, thousands of Kenyans live below the poverty line.

Statistics indicate that, of the working age (15-64 years) population, 1.9 million are unemployed, whereas it is envisaged by 2012, the population will soar to 23 million, with unemployment to still at the highest (49 per cent).

"Thousands of workers are being retrenched or arbitrarily sacked in both the public and private sectors," Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli, said.

The Cotu boss admits the economy is not performing and is undermining employment, adding that the latest trends on the labour market are even scary for ordinarily employee. Gone are the days when employment was "permanent and pensionable" says Atwoli.

Casualisation of labour continues to deny millions of Kenyans steady flow of income and decent living.

"We are saddened with the continued trend of employing wananchi as casual labourers," Atwoli said last week when he addressed shop stewards at Solidarity House in preparation for today’s event.

"It is worrying that jobs are being categorised as casual, temporary or seasonal much to the suffering of workers," he said.

More loss of jobs

Moreover, unemployment is set to skyrocket because there are no evident efforts to arrest the situation. Last year, Ministry of Labour reported more than 10,000 Kenyans lost jobs.

Atwoli blames the emergence of outsourcing as a major cause for the trend of employing people on casual or temporary basis.

Outsourcing, which occurs when a business secures products and/or services from a third party, as opposed to producing them in-house, has led to loss of employment in various sectors.

The Cotu boss cites the horticulture and agricultural sectors as the worst hit.

"Cotu is opposed to the outsourcing of staff because the process has been abused. Employers arbitrarily lay off staff in the process," he explained.

In a country where majority of citizens are trained and qualified, there is no job security anymore as employers are spoiled for choice.

Many times work is outsourced simply to save money. So, the choice is made to reduce local workforce, at the expense of the laid off employees.

Social Security

By outsourcing job duties to non-employees, a business does not have to pay consistent wages or offer additional employee benefits.

Atwoli argues workers are contracted under poor terms of service. Majority are hired as casuals, remunerated poorly or denied social security.

"Take the case of the National Social Security Fund where a worker was found dead in its premised ten days after she was reported missing yet the management remained unaware of it," Atwoli argued.

"If the cleaners are not your employees and are not on payroll, no one will pay attention to their security, leave alone wages," said Atwoli.

But the Federation of Kenya Employers has a different opinion. It says outsourcing is a worldwide trend where companies concentrate on their core business.

"If you are in the airline industry, you have no business offering cleaning services as it is not your core business," Jacqueline Mugo, FKE chief executive said.

Mugo defended employers who run outsourcing companies, saying they should be encouraged instead of condemning them. She added that the outsourcing companies also offer employment to locals.

"We should strive to enhance the welfare of those employed instead of condemning the trend," Mugo said in an interview with The Standard on Saturday.

The private sector has argued the cost of labour is higher here compared to other countries in the region.

Energy, labour, and infrastructure have pushed the cost of doing business high, making it difficult for companies to operate.

"As a result most companies are relocating elsewhere due to uncertainty for the future," Mugo said.

Employers are struggling to keep workers in employment due to the hard times.

"Political uncertainty is also not good for business. These are some of the bottlenecks employers face," she said.

And as trade unions struggle to assist workers, a report by the International Labour Office says workers employed by temporary employment agencies have been among the first to lose jobs, as a result of the financial and economic crisis of last year.

The report, ‘Private Employment Agencies, Temporary Agency Workers and their Contribution to the Labour market’, which was released late last year, points to a direct correlation between economic growth and the state of the employment agency industry in developed and developing countries.

The report observes that ratification of International Labour Organisation Convention No 181 on private employment agencies can help to promote decent work and ensure better functioning labour markets.

Modern labour markets

The convention balances enterprises’ needs for labour flexibility with workers’ needs for employment stability, a safe work environment, decent conditions and social security. These are lacking in our labour system.

"Private employment agencies play important roles in the functioning of contemporary labour markets," the report says.

They act as intermediaries in modern labour markets, allowing enterprises greater flexibility to increase or decrease their workforces, while ensuring security for workers in terms of job opportunities and employment standards, including pay, working time, and training.

While Cotu has called for an audit of casual, temporary and seasonal workers, taming unemployment remains the solution to uplift the living standards.