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Tuskys Staff To Be Refunded Deducted Salaries

BY Soko Directory Team · July 24, 2020 02:07 pm

By Nsunjo Erica

Tuskys is expected to refund recently implemented salary cuts to staff following disputes that were dragged into the Employment and Labour Relations courts.

The refunding exercise follows interventions by unionized employees who were sighting a lack of prior engagement.

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

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

Tuskys 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.

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

Minutes of a consultative meeting between Tuskys and staff held on Thursday and seen by Citizen Digital indicated that Tusker Mattresses Limited stated that it would be a miracle is July salaries are paid.

According to Tuskys, sales have continued to decline with losses running over Ksh.100 million so far and more layoffs are set to hit the retail chain as the COVID-19 pandemic continues to bite hard.

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 labor force.

Tuskys has been going through financial turmoil, blaming to slow business environment as a result of the ongoing Covid-19 that has affected numerous businesses across the country.

The retailer has even failed to pay off some of its suppliers on time as well as for settling its rent on time. Some suppliers have called on the government to intervene to help them get their money.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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