Boost for hoteliers after landmark MoU signing

Workers in the hotel industry now have a huge reason to smile after the Kenya Association of Hotel keepers and Caterers (KAHC) and Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) Tuesday announced the completion and successful registration of 2019/2020 Collective Bargaining Agreement (CBA) that outlines terms and conditions of employment in the hotel industry.

This follows the signing of the Collective Bargaining Agreement (CBA) by KAHC and KUDHEIHA.

“Today we are celebrating a significant milestone in the hotel industry as we sign the CBA with KUDHEIHA.

This journey started in the 60s as we negotiated while maintaining cordial relationships resulting to limited industrial unrest and providing conducive investing and working environment in the industry” said KAHC Chairman, Mr. Chris Musau as he urged workers and management to adhere and comply with the new terms and conditions in the CBA.

The deal signed in Nairobi will see a 10 per cent increase on general wages for 2019 and a further 8.5 per cent in 2020 making it a total of 18.5 per cent over two years with house allowance at 10 per cent for 2019 and 8.5per cent for 2020, as well as a 7 per cent service charge to be earned by all unionisable employees on sales and 5.5 per cent on beverages. This is a formal tip that is shared equally across the board and improves the employee’s income and performance.

Other benefits include medical scheme, gratuity, leave allowance, travel allowance and welfare matters, for instance, when an employee loses a loved one.

An alternative dispute mechanism is enshrined in the CBA, which is the Joint Industrial Council and the Coast Dispute Committee. These two bodies are tasked with the responsibility of investigating disputes and training both employers and employees on industrial relations.

KUDHEIHA Secretary General, Albert Njeru expressed his appreciation to all industry stakeholders who worked hard to ensure the CBA is brought to completion. He urged members to continue their good work to enable the hotel industry to thrive.

Other than the KAHC/KUDHEIHA CBA, the two parties also successfully negotiated and completed the NAS CBA within the year.