We're ready to negotiate with staff over strike, KQ boss says

KAPLA refused to attend meeting called by the Government appointed conciliator.

In Summary

• KQ management attended a meeting with KALPA where COTU secretary General Francis Atwoli tried to reconcile the two parties.

• He said the strike threatens to erode these improvements and the airline stands to lose up to Sh300 million per day should the industrial action take place.

A KQ plane
A KQ plane

Kenya Airways Group Chief Executive Officer Allan Kilavuka said the management is ready to hold talks with the Kenya Association of Pilots (KALPA) on the strike issue.

KALPA accused KQ management of being unavailable to meet whereas Kilavuka stated that KQ management has been open to negotiating with KALPA.

 "Kenya Airways PLC (KQ) held a press briefing to address the industrial action notice issued by KALPA. I addressed some of the grievances raised by KALPA, which included failure by management to negotiate with the association, suspension of the Provident Fund and lack of faith in the current KQ management," Kilavuka said in a statement.

KQ management attended a meeting with KALPA where COTU secretary General Francis Atwoli tried to reconcile the two parties.

The meeting ended with no direct agreement as the association stated that their demands were non-negotiable.

The second was a meeting called by the Government appointed conciliator on Monday, October 31 2022, but KAPLA failed to attend.

Kilavuka said on demands to reinstate the Provident Fund, the Fund's trustees where staff, including pilots, are represented, had sanctioned its suspension due to the sponsors' dire financial status, in line with the Trust Deed Rules and the RBA.

The CEO was categorical that funding both the Provident fund and deferred pay would require additional government funding.

“We cannot afford to pay the deferred salaries and the Provident Fund at the same time. We appreciate the Government's support that has enabled KQ to remain in operation during this difficult time.

"We are, however, cognisant that the Government has more pressing challenges, like the current drought, and we must do all we can to become self-sustaining," he said.

Kilavuka said he was confident that with the continued sacrifices and hard work by staff, and the improving business environment, KQ would be able to reinstate the Fund in mid-2023.

He added the airline continues to address the legacy issues of the high cost of operations through various initiatives and has negotiated, on average 21 per cent reduction in lease costs amounting to Sh2.5 billion annually from 2023.

"KQ has also rationalised its fleet by returning excess aircraft and is terminating expensive aircraft leases, specifically the Boeing 777, from its fleet," he said.

Kivaluka said the airline aims to reduce overall costs by 10 per cent compared to 2019 (pre-COVID) by the end of 2023.

He highlighted the improved business performance and pointed out that passenger uplift in the first half of the year was approximately 250,000 passengers per month, representing 97 per cent more passengers compared to the same period in 2020.

He said the strike threatens to erode these improvements and the airline stands to lose up to Sh300 million per day should the industrial action take place.

"This would affect recovery efforts for different sectors of the economy, including tourism, horticulture, trade, and millions of livelihoods who depend on the airline," he said.

He asked the Union to reconsider its hardline stance and allow the airline to grow as management remains available for dialogue.

The employees had threatened to start their strike on Wednesday.


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