Tuskys facing court feud with union after the botched layoff of 80 workers

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Supermarket giant Tuskys faces a court battle from its workers’ union after attempts to layoff 80 workers in its redundancy plan.

According to the court filings, the Kenya Union of Commercial Foods and Allied Workers seeks to resist the retailer’s layoff move. Instead, the workers’ body suggests the retail giant establish an unpaid leave plan instead of job cuts for the 80 members. The petition further resists the redundancy plan due to Tuskys Supermarket’s continued reliance on outsourced workers.

“The respondent cannot be allowed to declared redundancies when at the same time retaining a large number of outsourced labor as this means that regular employees who are union members are not wanted,” says Boniface Kavuvi, the Union’s Secretary-General.

The suit comes after Tuskys made its redundancy plan clear by informing the Labour Ministry on May 22.

The suit also follows recent court woes Tuskys Supermarket is facing against the Competition Authority of Kenya. In its filing, the organization filed a petition to order Tuskys to pay suppliers Sh1.29 billion owed between July 1 and July 16 amid the retailer’s cash crunch.

The High Court ruling is expected on Wednesday with issues orders set to mark the new suit’s conclusion.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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