Flower farmers now employing workers on contract to cut costs

Workers from Naivasha based Van Den Berg flower farm harvest roses for export ahead of Valentine Day when demand for the flowers is at its highest. Farmers are complaining over high freight charges coupled by lack of enough airlines to ship out their daily production to the EU market. [Antony Gitonga, Standard]

Flower farmers in Naivasha are now opting to employ workers on six-month contracts as part of cost-cutting measures due to harsh economic times.

The Kenya Plantation and Agricultural Workers Union (KPAWU) has termed the move unfair, noting that though legal, it had far-reaching implications for the workers.

The union accused some flower farmers of intentionally adopting the new employment terms with the contracts ending just when salaries were about to be reviewed.

KPAWU secretary general - Naivasha branch Ferdinand Juma claimed that the new trend was meant to lock out workers from being represented by the union.

"The harsh economic times have affected companies across the country, and it is time that the government intervened before more farms go this way," he said.

Juma noted that workers employed on contract are not entitled to pay rise and other benefits, which are enjoyed by permanent employees.

"We have seen cases where investors are employing workers on a seasonal basis, meaning that they cannot get the annual pay rise or leave as per the labour laws," he said.

Speaking in Naivasha, the union official regretted that the high cost of living had also affected workers, many of whom were struggling to pay bills.

"The rise in the cost of basic items has eroded consumers' purchasing power, and the farmers claim they are not able to currently review salaries," he said.

Speaking earlier, the Kenya Flower Council (KFC) chief executive officer Clement Tulezi, defended the farmers, noting that many were barely making a profit due to the high cost of production.

"The profit margin for the farmers has been reduced sharply due to the rise in the cost of production in the last couple of years," he said.

This came as the Agricultural Employers Association (AEA) renewed its call to the government to pay farmers the Sh12 billion that they owed them in VAT refunds.

The association CEO Wesley Siele said some farmers had been forced to scale down production due to the financial crisis and an increase in the cost of production.

"The high cost of production has adversely affected many farmers who had planned to expand, and this can be achieved if they get the VAT refunds," he said.

Siele said that the VAT could come in handy and the last time the government paid the farmers was in 2020 at the height of Covid-19.

"The government owes farmers over Sh12B in VAT refunds, and this can be used to expand the sector and create more job opportunities," he said.