The agreement for the period July 1, 2014 to June 30, 2016 will only give increments on various productivity based allowances.
“Trusting that our people will deliver, the parties agreed to give increments on various productivity based allowances,” read a statement from both parties.
According to the agreement, all increments will take effect from the January 1, 2015 with no arrears payments.
All monetary clauses will be valid until July 2015 when they will be reviewed subject to company performance with the non-monetary valid until June 30, 2016.
“In the flight operations area parties agreed have a 5th and 6th sector operation to optimise on crew productivity. They also agreed to increase block hours from 10.15 hours to 12 hours,” read the statement sent to newsrooms.
The agreement was signed on December 19, 2014 and is awaiting registration by the Industrial court.
“In our deliberations, reduced wastage in certain sectors became the basis for funding improvements in productivity based allowances – an approach that can and should be adopted in other businesses and sectors,” the statement read.
This comes as the company posted an after-tax loss of Sh10.4 billion in the half year ending September 2014 which the carrier attributed to the challenging business environment in the period.
KQ Group Managing Director Mbuvi Ngunze indicated that the fire tragedy at the Jomo Kenyatta International Airport, travel advisories following the Westgate attack, the security situation in Mpeketoni and the Ebola outbreak in West Africa negatively impacted its passenger flow thus affecting its revenue generating capacity.
He however stated that a raft of measures that include the deployment of new fuel efficient fleet, improved customer service and improved infrastructure at the airport have been put in place to mitigate the situation.