Trouble in Mumias Sugar as workers threaten to sue over restructuring

MUMIAS, KENYA: Sugarcane workers have threatened to move to court over planned staff lay-off by Mumias Sugar Company.

The company's Managing Director Coutts Otolo announced recently that the company will lay-off several workers in what they termed the ongoing restructuring process to rationalise its 1,900 employees and get desired results.

The workers through their leaders faulted the move, saying they are ready to move to Industrial Court should the company make good its threat.

''Whenever companies face challenges, the first thing is to lay off staff. We understand that Mumias is witnessing numerous challenges, but laying-off staff is not a good solution. We will not support it,'' said Kenya Union of Sugarcane Plantation and Allied Workers Union (KUSPAW) Secretary General Francis Wangara.

The workers said the company already had undergone restructuring where several staffs were laid-off to pave way for automated machines and doing the same will affect livelihoods of many families.

''If they are genuine in their plans, then they should halt sourcing labour from outside. Workers on long-term contracts should also be done away with,'' said Wangara, adding that such measures could drastically ease the crisis.

Wangara however, blamed the company management on the crisis bedeviling the institution and called on them to make public forensic audit conducted on the company.

Last year, Mumias hired KPMG, a private auditing firm to probe into illegal dealings such as irregular importation of sugar by the company leading to lose of millions of shillings.

Though the board of directors is yet to make all the findings public, board chairman Dan Ameyo says making the documents public will jeorpadise further investigations.

"We are studying the findings to make sure that all those involved are prosecuted. Our lawyers are already preparing to take to court those we have sacked," Ameyo said.

But farmers and workers want the report made public so that those involved in the scam are known and should never be allowed to manage the company again.

''We want the report published to scrutinise it and know who was involved in the misdeeds. The company board should quickly heed to our demands,'' said Wangara.

In recent months, the factory is witnessing steady decline in cane delivery.

The farmers however, blamed the decline on failure by the firm to provide farm inputs to cushion farmers from high cost of production.

''The farmers are scaling down production owing to high cost of production. The company should provide subsidies,'' said Kenya Sugarcane Growers' Association Secretary General Richard Ogendo.