CMA declines to intervene in airline’s jobs row

The Capital Markets Authority (CMA) has no role in the management of staff affairs at Kenya Airways.

Appearing before a parliamentary committee, CMA  officials said staff matters are dealt with by management of the airline and should not be disclosed to the market regulator.

CMA’s acting Chief Executive Officer Paul Muthaura and Director of Market Operations Wycliffe Shamiah told Committee on Labour and Social Welfare that seeking to know about the hiring and firing of staff by a company would be tantamount to interfering with the management of the firm. Mr Muthaura, however, said that KQ has complied with all the rules and regulations regarding disclosure of information to the authority.

The committee is probing the retrenchment of 600 KQ workers and Muthaura said CMA has set standards and threshold that all companies listed in the Nairobi Securities Exchange should comply with in terms of disclosure of information.

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He told the Sophia Abdi-led committee that KQ has complied. The Government has 27 per cent shares while other shareholders have 62 per cent stake in the airline.

“As far as the issue of redundancy is involved, especially the disclosure of staff recruitment and retrenchment, this is not under our mandate and we believe it is a management decision,” said Muthaura.

On Tuesday, the Ministry of Labour termed the dismissal of 600 staff as ‘cruel and barbaric’. Labour PS Beatrice Kituyi said the employees were given only ten days to decide whether to opt for early retirement, contrary to the Employment Act that requires a 30-day notice.