NAIROBI (Xinhua) – Kenya’s employers and consumer bodies on Friday opposed the nationwide strike called by the Central Organisation of Trade Unions (COTU) and the Matatu Welfare Association scheduled for Monday December 19 over rising inflation. In separate statements issued in Nairobi, the Federation of Kenyan Employers (FKE) Executive Director Jacqueline Mugo said industrial action is not the solution to the economic woes in Kenya.
Ms Mugo said workers must know that the actual effects of inflation are as a result of system inefficiencies and high taxes. “There is a desperate need to create a better Kenya for all. The increase in the cost of labor will by no means result in increased production of goods and services but increase in the amount of money in the economy thereby fuelling inflation,” she said. Last week, the workers umbrella union, COTU, threatened to call for a ten-day nationwide strike to protest the escalating cost of living due to the high fuel prices.
The strike will affect travellers heading up-country for the festive season since COTU has roped in the Matatu Welfare Association (MWA), the umbrella body for public transport operators, in the industrial action. COTU Secretary General Francis Atwoli said the workers umbrella union is demanding a 30 percent reduction on all petroleum products, which will automatically cut prices of basic commodities. Mr Atwoli said the strike is set for December 19 to December 27. Prices of essential commodities have risen by over 50 percent in the past six months with the low income earners bearing the brunt of the inflation.
However, the Consumers Federation of Kenya (COFEK), which has opposed the strike, appealed to workers, matatu (mini bus) vehicle operators and other Kenyans of goodwill not to participate in the strike called by COTU leadership. “No country in the world has ever cut the high inflation and consumer injustices through industrial strikes. Neither does paralysing public transport ease the consumer burden. On the contrary, the planned COTU strike runs the risk of eroding the few economic gains the country has made,” COFEK Secretary General Stephen Mutoro said.
COTU VERSES COFEK
Mr Mutoro said COTU has had no known record of fighting for consumers other than for salary increments of its affiliate union members. “Rather than resort to counter-productive industrial strikes, COTU should have joined COFEK in demanding for better regulation of various sectors especially the energy and finance,” he said. “The reason we have been asking in vain for the Finance Minister to name the Competition Authority Board to rein in on regulators conspiring with the industry to defeat consumer protection issues.”
On Thursday COTU reiterated that a planned nationwide workers strike will go ahead on Monday, with the support of public transport operators. Mr Atwoli said they were dissatisfied with Wednesday’s reduction of fuel prices by an average of 5 shillings (0.059 U.S. dollars). He insisted that fuel prices should immediately come down by 30 percent. Atwoli said the union’s umbrella body had sought dialogue with the government over the matter albeit unsuccessfully.
“We already issued a notice to the Minister for Labor, after having written to the President. So if there is no intervention by Friday, let nobody seek an explanation as to why workers fail to report to work on Monday,” said Mr Atwoli. FKE, the employer body on its part appealed to COTU to take “a more reasonable position” in the case of matatu and truck drivers strike, saying that the strike scheduled for Monday will have a negative impact to the country’s economy, in addition to hurting Kenyans who are planning for a rested holiday season.
BURNDOWN CALL
Ms Mugo also criticised Thursday’s call by Atwoli that he would mobilise youths to burn down employer factories was illegal and went against the principle of justified strike action. She challenged leaders to be of mindful in their speeches and direct the nation in a manner that is in order and with the accountability that each office requires.
FKE has however conceded that inflation has risen persistently over the last one year from a low of 3.18 in October 2010 to a high of 19.72 in 2011 and that this high cost of living has eroded Kenyans purchasing power. “The country is currently characterized with high interest rates, high fuel and electricity prices. These high prices have a direct effect on the cost of production and therefore the cost of goods and services,” Ms Mugo said.
COFEK said it will continue to employ diverse lawful strategies to advocate for the consumers without seeking to strangulate the weakened economy in the manner COTU has approached the issue. “COTU would have added more value if it took on cartels possibly aided by its members. The consumer challenge is about corruption epitomised by cartels and which thrive because of a failed regulatory framework especially within the finance, energy and agricultural sector,” Mr Mutoro said.
Coming at a time the country’s economy has had a severe beating from industrial strikes, he said Kenyan workers must indeed ignore the COTU call and carry on their lives as usual especially during this festive season. Several organisations have also called for urgent interventions to curb skyrocketing fuel prices that have pushed the prices of essential goods through the roof.
High kerosene prices have hit users especially those in the rural areas since kerosene is the fuel of choice among low-income earners. Motorists have also been hard hit by the high fuel prices forcing many to limit the use of their private vehicles.
REPORTED BY NJOROGE KABURO AND PETER MUTAI (Xinhua)
