Mumias fires all workers

Mumias Sugar Factory. [File, Standard]

Employees of Mumias Sugar Company have been rendered jobless after the receiver manager issued them with a termination notice yesterday.

The receiver manager, PVR Rao, issued the notice yesterday addressed to all employees and copied to heads of departments and the workers union.

KCB Group placed the sugar miller in receivership in September.

“Consequent to the company being placed in receivership, all employees’ contracts stand terminated from the date of receivership, September 20, 2019,” read the notice.

Mr Rao said any payment to the affected employees would be dealt with in accordance with the provisions of the law.

No pay

The statement has left the workers, who have gone 31 months without pay, with little hope of getting their dues. Workers are owed Sh1.8 billion dating back three years.

The receiver manager said he will consider engaging workers on temporary basis at mutually agreeable terms until the company resumes operations.

Mumias Sugar head of legal services Patrict Mutuli declined to comment on the notice, which he distributed yesterday morning.

“I am not authorised to speak on the matter currently, only the receiver manager is able to address issues arising from the notice,” he said.

Kenya Union of Sugar Plantation and Allied Workers Mumias branch secretary-general Vitalis Makokha termed the notice illegal.

He said their employment was guaranteed by the receiver manager in several meetings they had held earlier.