Embattled Retail chain Nakumatt Supermarket employees have joined the list of creditors and entities seeking legal help over the company’s failure to meet its financial obligations.
The employees, through the Kenya Union of Commercial, Food and Allied Workers (KUCFAW), have moved to court accusing Nakumatt of delaying their salaries, failing to pay them for overtime worked as well as non-implementation of the 11 per cent salary increase from May 1, 2017 as agreed in a collective bargaining agreement (CBA).
Business Daily reports that the retail chain has also unilaterally reduced the workers’ shift hours from 13 to 10 hours with the aim of cutting down their overtime pay.
Nakumatt is also not remitting pensions, pay as you earn (PAYE) deductions, loan repayments, sacco contributions, private insurance schemes deductions, and union dues to the relevant agencies, the employees say in their petition before the High Court.
The suit adds to the long list so far filed by creditors including suppliers which in July attached the retail chain’s goods and equipment to recover Sh51 million in rent arrears.
A separate insolvency petition filed by one of Nakumatt’s top suppliers who is also seeking to recover Sh70 million in debts, is also pending determination by the court.
“Nakumatt should also be directed to implement 11 per cent general wage increase, which became due on May 1, 2017 according to the CBA,” Mr Boniface Kavuvi, secretary- general of KUCFAW argued.
Nakumatt and KUCFAW have a CBA, which came into effect on May 1, 2016 for a period of 24 months, expiring on April 30, 2018.
Trouble started after Nakumatt failed to honour the CBA and resorted to paying wages by the third week of the following month.