Court ruling saves tea firm over Sh500m in wages

It will cost Williamson Tea half a billion to effect a contested collective bargaining agreement that would have seen the lowest tea plucker take home Sh13,052, up from Sh10,052.
According to an application filed at the Appeals Court to stop the CBA calling for a 30 per cent increase of tea pluckers pay, the multinational said it will lose Sh578 million to increase workers pay.

The multinationals argued that the pay increase will blow their wage bill by 60 per cent.
"This is a colossal sum and the applicant may not be able to recover the same if paid out to the respondents union employees," Appeal Court judges who gave the multinationals a temporary reprieve said in an October 7 ruling.
Kenya Tea Growers Association (KTGA) members including Williamson Tea are unwilling to comply with an industrial court ruling mid this year effecting an increase of tea growers' salary by 30 per cent.