Cotu, employers on a collision path over minimum wage

The employers' and the workers' unions could be treading on a warpath after disagreeing on increment of the minimum wage.

Whereas the Central Organization of Trade Union (Cotu-K) boss Francis Atwoli is rooting for at least 22 per cent pay increment for lowest paid worker, the Federation of Kenya Employers wants such raise pegged on enterprise productivity.

Atwoli who attributed high cost of living to poor governance, wants workers remuneration reviewed to ensure their income can support tough economic times. He wants the lowest paid worker to take home Sh15, 372 from the current Sh12, 600.

"When the economy is not growing, the Government should come up with mechanisms to ensure people are not starving and one of the ways is to improve remuneration for workers," he said Monday.

This proposal comes barely a week after FKE Executive Director Jacqueline Mugo said there was need to revise the approach to wage increments so as to cushion employers from unsustainable costs.

"There is need for a very sober discussion between the trade unions, employers and the ministry of Labour on wages.

Workers should not just get pay increments because it's a labour day but because we have taken into account all the factors for wage determination, which include productivity, ability of our economy to create jobs and the impact of any wage increase on the ability of the informal sector to operate," she said during the annual general meeting of FKE's western Kenya chapter a week ago.

In an appeal to President Kenyatta's Government, Mr Atwoli pegged a condition that workers would consider re-electing him if matters affecting workers are heard and acted upon by Labour Day – May 1.

But Ms Mugo who feels such increments have been politically motivated said they were intensely lobbying the Labour Ministry to have Labour Day minimum wage increments scrapped off the day's celebrations.

The day, according to Mugo, should instead be dedicated to reviewing how enterprises have performed and for mooting the way forward.