20100914
reuters

NAIROBI (Reuters) - Workers at Kenya's sole power distributor will go on an indefinite strike from next Monday to press for better terms, their union said on Tuesday, a move that could damage East Africa's biggest economy with blackouts.

The strike will involve the 8,000 employees of Kenya Power and Lighting Company, who are angered that 5,000 of them are on casual terms and the firm has been using contractors for some tasks, a practice the union wants stopped.

The company said in a statement it had put in place contingency plans to ensure disruptions to electricity supply do not occur during the strike.

"As long as the issues are not addressed -- that is how long the strike will last," Ernest Nadome, the general secretary of Kenya Electrical Trade and Allied Workers Union, told Reuters.

"First is the issue of contractors. This was started due to a backlog of new connections applications and it has lasted for the last three to four years.... They have now taken away jobs that are done by permanent employees."

Kenya Power said it will continue to engage the union's leaders in structured dialogue to resolve any genuine concerns.

Nadome said his union had information showing the contracting firms are owned by managers at the company who were inflating their bills, thus driving up the company's costs.

"They are ripping the company off and that is why as a union we are saying enough is enough, we are tired of this," said Nadome, adding the workers will also be demanding that the 5,000 workers who are on casual terms get full employment.

Kenya Power is expected soon to issue its results for the full year which ended in June. The management has urged anyone with suspicions of corruption at the firm to forward it the national anti-graft commission for investigation.

The company's shares have rallied this week in anticipation of profit growth.