Flower farm sends 2,500 workers home as cash crunch bites

Olkaria MCA in Naivasha Peter Pallang’a (left) addresses some of the 2,500 workers from Oserian flower farm who were laid off after their contract expired yesterday. [Anthony Gitonga, Standard]

Naivasha-based Oserian flower farm has laid off more than 2,500 workers as the financial crisis in the floriculture sector deepened.

The farm, which is one of the largest in the country with over 3,500 workers, sent the staff home after their contracts allegedly expired.

The management, however, denied sending the workers home, according to Managing Director Neil Hellings.

“No one has been sacked as you claim and our public relations person shall get back to you with the full information,” said Mr Hellings when contacted.

In a press release, Finance and Administration Director Tim Ndikwe said the farm had been sub-divided and a change of use amended to industrial, commercial and residential use in support of diversification plans.

Plans underway

Mr Ndikwe said plans were underway for the creation of an industrial park, which will be known as Two Lakes Industrial Park.

“We have contracted out all our flower packing operations and similarly put all our non-rose crop production on a contracted basis, and not a single permanent unionisable worker has been retrenched,” he said.

However, operations at the flower farm located on Moi South Lake Road remained paralysed after the workers refused to be hired afresh by a company that has been contracted to outsource services from the workers.

According to Ferdinand Juma, the Kenya Plantation and Agricultural Workers Union (KPAWU) secretary general for Naivasha branch, the farm's managers decided to terminate the workers after their contracts ended.

Speaking in Naivasha yesterday, Mr Juma accused the flower farm of unfair labour practices, noting that it had outsourced services in all sectors with a view to oppressing the workers.

“Oserian has been sacking permanent workers for the last two years while some directors in the same company have been outsourcing the services of the same workers, but on different terms and condition,” he said.

In the latest case, he said the workers earned Sh13,000 inclusive of their house allowance, but the outsourcing company wanted to pay them Sh8,000.

Central Organisation of Trade Unions (Cotu) has asked Labour Cabinet Secretary Ukur Yattani to conduct investigations and take action against flower farm investors who practise capital flight in the country.

Cotu Secretary General Francis Atwoli said the practice of capital flight had affected employees, who were victimised and laid off by investors unprocedurally and against labour laws.

Permanent basis

Speaking in Nakuru, Mr Atwoli said the majority of companies employed workers on a permanent basis, but later placed them on contracts, which affected their welfare.

Peterson Wanjala, who has worked on the farm for 15 years, said he was not sure where to turn after the latest development.

And addressing the workers, area MCA Peter Pallang’a promised to raise the matter in the county assembly.

“The CS for Labour and Majority Leader in Parliament should come and protect workers because the country is losing thousands of workers because of these investors,” said Atwoli. [Additional reporting by Mercy Khaenda]