Standard Group Journalists Set to Strike in January

Journalists at Standard Group have been advised by the Kenya Union of Journalists (KUJ) to begin industrial action against the company on January 6, 2023, unless their demands are met. The vast majority of journalists at the company have not received their salaries for the past three months. KUJ issued Standard Group with a 14-day strike notice on December 23 demanding full payment of the arrears.

In a statement dated December 30 seen by Business Today, the KUJ dismissed attribution of the company’s financial woes to the lingering effects of Covid-19, putting Standard Group on the spot for various questionable practices dating back to before the pandemíc. Among them were union-busting and failure to implement clauses of a Collective Bargaining Agreement (CBA) on leave allowance, actions the union says paved the way for salaries to go unpaid and arbitrary reduction of journalists’ pay.

“This is inhuman and demonstrates impunity as staff have for the past three months struggled to meet their financial obligations in the wake of soaring cost of living being experienced across the country. The staff have been deprived dignity, especially during this festive season where families enjoy the fruit of their hard labour,” the KUJ statement read in part.

KUJ noted that the journalists faced the risk of depleting their savings and losing their sacco contributions.

“This insensitivity and don’t care attitude has been going on for three months, and to add salt to the ínjury, the management has unilaterally decided to chop salaries of staff in total disregard to the Employment Act that protects salaries of staff from únlawful deductions. The company only paid 80 percent of staff salaries for the month of October, and kept quiet about the remaining 20 percent,” the union asserted.

Standard Group, an NSE-listed company, had issued a profit warning earlier this month. Earnings for the year ending December 31st, 2022 are expected to be at least 25 percent lower than reported earnings for the year ended December 31st, 2021.

“The decline is attributed to increased cost of raw materials, global disruption in supply chain and depreciation of the Kenyan shilling against major currencies. This resulted in an increase in the cost of production by more than 50%. The decline was further compounded by the heightened political environment with advertisers pulling out during the political campaign period between July and October,” CEO Orlando Lyomu wrote.

Journalists who spoke to Business Today revealed frustration not only over the unpaid salaries, but also the lack of clear communication by the company regarding the matter.

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