NAIROBI, Kenya, Mar 12- Unionisable workers of the East African Portland Cement Company will now enjoy a 34 percent salary increment over the next three years.
This follows the signing of a Collective Bargaining Agreement between the cement company and the Kenya Chemical and Allied Workers Union which will see the lowest paid employee earn Sh37, 612.
EAPCC Managing Director Eng John Nyambok said the pay hike which will be backdated to August last year will cushion the staff against the high cost of living.
“This is really in recognition of the efforts of our people and also taking cognisance of the inflation factors in our country. We have therefore decided to give a token of compensation to them,” he said.
An 11 percent increment will be effected in the 2009/2010 and 2010/2011 financial years respectively and the remainder of 12 percent in 2011/2012.
The higher paid union grade which currently receives a basic pay of Sh68,954 will now get Sh95,153 by the end of the three-year period.
He explained that the management also factored in the negative impact that the global economic slowdown had had on their business.
“We took a balance between the survival of the business going forward and welfare of the workforce,” he added.
The Cement last year posted a Sh434 million profit in the half year of ended December 2009 up from a loss of Sh391 million registered in 2008.
Mr Nyambok said the increment would help motivate the employees to work hard and increase the company’s productivity.
“East African Portland is committed to addressing employee needs with an aim of achieving optimum performance, commitment and effectiveness,” he added.