• As of today, no minimum wage council has met to advise on the adjustments as required by law.
• We need to focus on programmes that spur growth.
Image: FILE
This week, I have heard the secretary general for Cotu pushing for a general wage increase. I understand where he is coming from because workers are struggling with a reduction of the take-home pay. But the reality is that there is no legal framework that supports general wage increases in Kenya.
This negates freedom of enterprise. The determination of wage review beyond the minimum wages that we often discuss, which are set by the state, is done through the negotiation of CBAs or at the employment contract level.
I implore us to delink wage adjustments, including statutory minimum wages, from the national Labour Day celebrations and allow these institutions to deliberate and advise the government. As of today, no minimum wage council has met to advise on the adjustments as required by law. Any call to adjust minimum wages without following the laid-down procedure and law undermines social dialogue and tripartitism.
The World Economic Report released on April 16 this year indicates that the slowdown in total factor productivity, increased misallocation of capital and labour between firms within sectors, demographic pressures and a slowdown in private capital formation are the key challenges facing the world economy today.
Depending on how you look at them, these challenges also present unique opportunities that we can tap into to take our country to the next level. Improving our productivity at the macro and micro levels is something we must focus on if we are to remain competitive as a country. It is time we took significant steps to improve productivity.
Data in our possession indicate that nearly two in every three entrants into the global workforce will come from India and sub-Saharan Africa. Developed economies like China will struggle with the effect of an ageing population. The global imbalance in labour supply also points to the importance of migrant workers to advanced economies. The employers thus support the President’s labour migration policy.
We need to focus on programmes that spur growth such as agriculture, tourism and manufacturing, and support enterprises to expand and create jobs for our people.
Excerpts of FKE boss’s Labour Day speech