Workers at Tuskys Supermarket complain of unpaid July salaries, Kenyanbusinessfeed.com has learnt.
Some staff say they have received half salaries from the struggling retail chain.
According to sources, Tuskys CEO Daniel Githua has informed the Kenya Union of Commercial Food and Allied Workers (Kucfaw), the union most of his workers are allied to that the retailers is not in a position to pay full salaries in July due to its shrinking revenues brought about by the Covid-19 pandemic.
“In reference to your letter we further confirm that salaries for the month of July 2020 has been paid in part of up to 50 percent of the total,” said Mr Githua in the letter.
The retail store is seeking over Sh5 billion from financiers and equity partners as it fights closure of branches and frequent stock-outs.
“Companies revenue has been on a decline ever since Covid-19 pandemic hit the country, making it impossible for the company to timely meet its financial obligation up to and including payment of salaries,” the letter continued.
In April, it sought to trim pay to staff by between 20 and 30 percent through the reduction of employee work hours from 45 a week to 36. Tuskys had informed the union that salaries for staff earning Sh49,999 and below had been reduced by 20 percent, a 25 percent cut for those earning Sh50,000 to Sh99,000 and a 30 percent cut on salaries above Sh100,000.
KUCFAW moved to court to protest the move. “We note that part of July 2020 wages/salaries are still outstanding to date and that some members did not receive the 50 percent,” said Kucfaw secretary-general Bonface Kavuvi in response to delayed payment of full salary.
Supermarket chain Tuskys says it needs immediate capital injection of Sh2 billion to survive in the short term as it scrambles to win back the confidence of suppliers and navigate a shareholder fallout.
The emergency bailout quest was revealed to the owners of the family-owned retail chain during a board meeting of their investment vehicle Orakam Holdings on June 30.
Tuskys is seeking a strategic investor as one way to raise the funds in exchange for a majority stake under the rescue bid.
It is not yet clear how much the retailer intends to raise from new investors who are to take a majority stake in the company.
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