logo
ADVERTISEMENT

Union urges State to bailout Posta

Also wants number of general managers reduced.

image
by VICTOR AMADALA

Business17 January 2022 - 01:00
ADVERTISEMENT

In Summary


  • •The Communication Workers Union has further called for the dissolution of the Posta board for what it says is failure to offer good leadership. 
  • •According to COWU Secretary-General Benson Okwaro, the parastatal has struggled to break even for the past seven years, hence the need for action.
Communication Workers Union Secretary General Benson Okwaro with COTU’s Francis Atwoli/FILE

The Communication Workers Union is now calling on the government to bail out the Postal Corporation of Kenya, amid a number of other changes to save it from collapsing. 

The union (COWU) which is affiliated to COTU also wants the number of general managers reduced as a cost-cutting measure, and the Posta board dissolved for what it says is failure to deliver positive results. 

According to COWU Secretary-General Benson Okwaro, the parastatal has struggled to break even for the past seven years, hence the need for action.

"While I do appreciate that the organisation has lost its traditional business, there is need for the government to support the corporation in their innovation process so as to enable them run their business in this competitive era,"Okwaro said.

There is a need for the postal corporation to reduce the number of general managers, assistant managers, and regional managers "to a reasonable level that is sustainable, he said.

Posta staff have not been paid their salaries since November. 

"The current postal corporation board has failed to provide oversight and direction and should therefore be dissolved," he said.

Meanwhile, he has urged the government to use the corporation in sending mails, and capitalise on its courier services which will support its business.

"As it is now, most ministries don't support postal corporation of Kenya and instead are doing business with private companies which are competitors,"Okwaro said.

COWU has blamed the Devolution Ministry for failing to pay Posta despite using its buildings as Huduma Centres.

Out of the 623 outlets Posta has across the country, over 250 are struggling to sustain operations.

Posta is among parastatals that have remained on the National Treasury's bailout list, amid rising competition in the market.

There have been proposals to merge or restructure struggling state agencies, changes Treasury is expected to make in the short-term.

ADVERTISEMENT

logo© The Star 2024. All rights reserved