Uchumi to continue paying salaries

Dar es Salaam. Workers of the debt-ridden Kenyan retailer, Uchumi Supermarkets will continue receiving their monthly salaries even after the chain announced it has closed business in Tanzania.

The staff will continue pocketing their monthly pay as the management continues to settle to administrative issue.

Secretary of Tanzania Union of Industrial and Commercial Workers (Tuico), Kinondoni district, Mansoor Ramadhan told The Citizen that workers are still entitled to their pay given that to date no termination letters have been issued to employees

“To date no worker has received termination letter that’s why they received they were paid September salaries,” said Mr Ramadhan, who has been playing major role on behalf of hundred workers.

It was announced last week that Uchumi supermarket shut down its operations in Tanzania and Uganda after the two offices, which make up only 4.75 per cent but yet accounted for over 25 per cent of the operation costs.

Uchumi chief executive officer, Julius Kipnge’etich said in a statement that the two subsidiaries did not make any profit over the five years, which means they have been draining the parent operations.

Mr Ramadhan has been working closely with workers and lawyers who represent Uchumi investors to ensure the issue is well settled.

“I have been assured by the lawyers that Uchumi shops workers are still entitled to their rights given that the business is not closed as it is speculated in the public,” explained Mr Ramadhan.

According to him, the lawyers from Mawalla Advocate say there are some discussions going on at the management level and once they are concluded workers through Tuico will be informed.

He said what the management is consulting and for how long will it take remain secret among administration officials taking part in the meetings.

Mr Ramadhan called upon workers to be patient to give room to the management to clear their issues and they only have to keep watching whether the employer will release salary for October.

“We agreed with the lawyers that workers must be paid their salaries by November 2 this year which is the date our next meeting is scheduled, if the pay is not released we will assume that the employer has terminated employment and hence we will seek legal procedures,” said Mr Ramadhan.

Tuico agreed with lawyers that they better meet in November on the suggested date in order to give management more time to clear their issues thereby coming up with a solution to the dispute.

He said the next meeting will give a clear picture to whether workers should lodge a case against their employer or not.

According to Employment and Labour Relations Act, 2004, Tuico can only lodge a case after 30 days have erupted since the first day of the dispute, which was October 12 this year.

Some commentators are worried with what is happening at Uchumi shops as it could partly be resulted from fear of the highly opposed general election scheduled October 25 this week.