Kenya Airways (KQ) #ticker:KQ employees led by the pilots union have demanded the reinstatement of their salaries to 100 percent in the latest staff standoff at a time the airline has started recovering from the Covid-19 disruptions.
In a memo addressed to KQ’s chief people officer Evelyne Munyoki, Kenya Airline Pilots Association (Kalpa) wants the airline to pay them full salaries, saying that the carrier has recorded improved performance in business in the last few months.
KQ’s net loss stood at Sh11.49 billion in the six months ended June— a 19.8 percent reduction from the Sh14.33 billion loss it incurred in the preceding similar period, narrowing its half-year loss by a fifth.
It has opted to pay workers between 70-95 percent of their monthly pay, promising to settle the balance once it offset accrued payments to lenders and suppliers towards the end of this month or early next year.
But Kalpa— which represents 414 KQ pilots—wants the airline to settle 100 percent of the pay, saying that its members, who are in the same category as KQ suppliers and other workers have continued to offer their services despite significant financial strain.
“In line with your policy to fulfil backlog payments to other suppliers, we urge you to similarly honour your obligations in as far as our members’ terms and conditions of service is concerned,” said Kalpa general secretary Murithi Nyagah in a letter dated November 30, 2021.
“This is in accordance with initial understanding and agreements that the salary payout rates would be reviewed upwards in tandem with KQ’s improved performance.”
Kenya Airways chief executive Allan Kilavuka has however stood his ground saying that in as much as he is willing to restore workers’ pay to 100 percent in the near future, the airline is still bogged down with deferred payments to lenders and suppliers.
“Considering that the business is yet to recover fully and the need to meet and manage critical support for business continuity and recovery, it is impossible to meet the pilot union’s demands for 100 percent salary and allowances for November 2021. However, as communicated to our staff before, we will revert to full pay at the soonest possible opportunity,” Mr Kilavuka said.
Mr Kilavuka noted that KQ has continued to prioritise payment of staff salaries despite the dire financial constraints while managing other obligations to ensure continued operations and business recovery. As a result, all employees in the organisation have been on a […]