Two Malindi hotels risk auction over workers’ dues

Kenya Hotels and Allied Workers Union (Khawu) has threatened to auction the assets of two Malindi hotels if they do not pay their former staff after a court judgement.

Mapango Management and Malindi Investment were sued by the union separately and the long court battle led to workers being awarded millions of shillings.

At Mapango, Judge James Rika awarded four former workers who were dismissed without reasonable cause Sh2,229,342.

On the other hand, 37 former employees of Malindi Investment were awarded Sh2,232,150 by the same judge.

The first case was concluded on November 30 after being heard for over a year, while the verdict on the second one was delivered on July 26 after being heard since 2013.

But even after the judgements were delivered, Khawu says that the former workers are yet to get their dues.

“The usual 14 days of appeal elapsed long ago for the two hotels but they have not shown any interest in paying as directed by the court. We, therefore, have no other option but to direct our auctioneers to (sell the) assets,” said the union.

In the case before the Employment and Labour Relations Court at Malindi against Mapango, Justice Rika found that Julius Mwaringa, Jonathan Koi, Stephen Masavi and Stephene Mweni were unfairly terminated.

He added that the nature and amount of terminal benefits claimed by the four were undisputed.

“The respondent shall pay to the grievants compensation and terminal benefits as particularised in the statement of claim and respective witness statements filed on 9th October 2017,” said the judge.

In the second judgement, the claim for a refund of the unremitted Sacco shares was allowed.

The case was initially handled by another judge, Onesmus Makau.