Tuskys to refund deducted staff salaries


Tuskys to refund deducted staff salaries
File image of Tuskys Supermarket. PHOTO| COURTESY

In Summary

  • The retailer has indicated it will reimburse the deductions carried out between April and June in instalments beginning this month.
  • More layoffs are however set to hit the retail chain as it reports sharp declines in sales arising from the Covid-19 pandemic.
  • Tuskys employee base is estimated at 6,000.

Retailer Tuskys is expected to refund recently implemented salary cuts to staff following interventions by unionised employees.

The retailer has indicated it will reimburse the deductions carried out between April and June in instalments beginning this month.

The refunding exercise follows a dispute that dragged into the Employment and Labour Relations court with staff sighting lack of prior engagement.

The retailer had implemented salary cuts of between 20 and 30 percent through the reduction of work hours from 45 to 36 hours a week.

80 union staff who were earlier declared redudant as a result of branch closures are meanwhile expected to be reimbursed fully to the period ending May 31.

Inevitable layoffs

More layoffs are set to hit the retail chain as it reports sharp declines in sales arising from the COVID-19 pandemic.

The chain will be seeking to slash its wage bill to withstand the shocks to revenues including sending part of its staff on unpaid leave and the last resort of sending part of its workforce packing.

“Tusker Mattresses Limited stated it would be a miracle is July salaries are paid. Sales have continued to decline with losses running over Ksh.100 million so far,” read minutes of a consultative meeting between Tuskys and staff held on Thursday and seen by Citizen Digital.

Tuskys unionised employees indicated they were willing to consider unpaid leave if the company dispenses with its outsourced staff.

The workers represented by the Kenya Union of Commercial Food and Allied Workers (KUCFAW) are further seeking to be spared from the looming layoffs arguing their minimal composition of the retailer’s labour force.

Tuskys employee base is estimated at 6,000.

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Story By Kepha Muiruri
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