20100917
africanews

Kenyan government has stepped in an attempt to prevent a strike due to start on Monday that could damage East Africa's biggest economy with blackouts, sole power supplier said.

The strike were to involve the 8 000 employees of Kenya Power and Lighting Company, whose shares have tumbled on the Nairobi Stock Exchange after the union issued its threat to strike earlier this week.

The Kenya Power and Lighting Company (KPLC), said the Ministry of Labour had written to the Ketawu leadership advising them to withdraw the strike notice and, to advise Ketawu members of the consequences of participating in an illegal strike.

"The Ministry of Labour has appointed a conciliator to reconcile the two parties, and the first meeting is scheduled for Friday," KPLC said in a statement.

The union, Ketawu, is 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 had stopped.

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

At 11:47 GMT, KPLC's shares fell 1.69% from the previous close to $2.89.

The shares have doubled in value over a 12 month period and rallied 13.5% in September - before the strike threat - ahead of full-year results in anticipation of profit growth.

He said talks with the power company had failed, but the union would meet with KPLC in a meeting called by a conciliator from the Labour ministry.

"The talks have collapsed, and we are set for the strike starting on Monday," Nadome said. "If our issues are addressed, we will call off the strike."


Ernest Nadome, the general secretary of Kenya Electrical Trade and Allied Workers Union, told Reuters the strike was not illegal, saying it was enshrined in Kenya's new constitution.