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Sugar Industry Faces Shutdown as Workers Demand Sh10.8bn in Unpaid Wages

Central to the dispute is a Memorandum of Understanding and Collective Bargaining Agreements negotiated before the entry of new millers.

KISUMU, Kenya, Jan 27 – A nationwide strike that could paralyze the country’s sugar industry is looming after the newly elected Secretary General of the Kenya Union of Sugarcane Plantation and Allied Workers (KUSPAW) warned that workers will down tools if the government and millers fail to honour outstanding wage and benefit obligations.

Speaking on Tuesday at Tom Mboya Labour College in Kisumu after being elected unopposed, Francis Wangara said the union had already issued a strike notice over unpaid salary arrears and benefits amounting to Sh10.8 billion, owed to workers in several sugar companies currently under transition.

“As we speak now, we have given a notice of strike which is going to take effect from Thursday,” Wangara said.

“If nothing happens within one week, we will call on all sugar companies to join in solidarity so that we paralyze the sugar mills in the whole industry.”

Wangara accused the government of making false promises despite clear agreements on how workers were to be treated during the leasing and transition of state-owned sugar factories to private investors.

Central to the dispute is a Memorandum of Understanding (MOU) and Collective Bargaining Agreements (CBAs) negotiated before the entry of new millers.

Wangara said the agreements remain binding and cannot be ignored by incoming investors.

“Before they came into play, there was already an agreement signed between ourselves and the government,” he said.

“Nobody can say that the MOU does not apply to them. They were nowhere when we signed it, but it is binding.”

The union leader raised concern over what he described as deliberate salary reductions by some new millers, warning that paying workers below agreed rates would not be tolerated.

“The sugar industry is exempted from the agricultural wages order, meaning salaries cannot be below the minimum,” Wangara said.

He said it is unfortunate that those who have taken over have decided to lower salaries.

He also accused employers of violating labour laws by blocking union activity and stopping statutory deductions of union dues.

“All of them have stopped deducting union dues, which is against the law,” he said.

He said the millers cannot obstruct the workers’ right to belong to a union.

Wangara further noted that branches had been forced to negotiate stipends to keep workers afloat during periods when factories were not operational.

“If management fails to pay stipends, employees will run to other companies and the industry will lose skilled workers,” he warned.

Wangara also singled out Chemelil and Kibos sugar companies, both currently in court, accusing their owner of frustrating workers’ rights.

“Workers have their rights, and they cannot be stopped by court processes,” he said, adding that the union would take very stern action against non-compliant employers.

Appealing directly to President William Ruto, Wangara urged decisive intervention to resolve the crisis.

“We respect the Head of State, but when his officers fail, it reflects back on him,” he said.

“He must take a bold step and guarantee that workers are paid what is due to them.”

Wangara called on newly elected union officials to act as “ambassadors of workers’ rights” as the union prepares for what could become a sector-wide confrontation.

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