Aviation workers postpone strike to allow for talks over JKIA-Adani deal takeover
Motorists pass through security checks at the entrance of the Jomo Kenyatta International Airport in Nairobi.
What you need to know:
- Workers union says it will not allow the takeover by Adani Airport Holdings Limited.
- The firm will also be expected to carry out renovations and refurbishments to the airport.
Kenya’s aviation union has postponed an industrial strike scheduled for August 19 to allow for talks with the government over the proposed deal between the government and India's Adani Airports Holdings.
Kenya Aviation Workers Union (KAWU) Secretary General Moss Ndiema on Saturday said the workers had made the decision to delay the strike for two weeks after the government extended an olive branch.
“On Wednesday, we were invited by the CS Labour Alfred Mutua and after lengthy deliberations we were requested to pose our strike actions and allow dialogue to take place. We also got an invite from the Transport CS David Chirchir for Tuesday next week. After we have held our delegates meeting today, we have agreed that we will delay our strike action for two weeks,” Mr Ndiema said.
Mr Ndiema also said the workers union will not allow the takeover by Adani Airport Holdings Limited since such an action will impact the terms of employment for the 1000 workers belonging to the union.
“As the workers union, there is nobody who has informed us about Adani. We only see it on media. The issue of Adan began way back in March. We have information flying on social media. We have reports that once Adani takes over JKIA, those at JKIA will lose employment. They will then have to reapply for new employment through Adani Airport Holdings. Those who manage to be employed by Adani will be replaced in new inferior terms. We cannot allow that,” he added.
In the Sh246 billion deal, the Gautam Adani-owned Indian firm would upgrade the airport, including the construction of a second runway and a new passenger terminal, under a 30-year-build-operate-transfer (BOT) contract.
The firm will also be expected to carry out renovations and refurbishments to the airport. It will also be responsible for the development and operation of JKIA- Kenya’s largest aviation facility and East Africa’s busiest airport.
The government has defended the deal insisting that JKIA was stretched beyond its capacity of 7.5 million passengers a year and urgently needed improvements.
The statement said modernising JKIA could cost $2 billion, which the government was "constrained to fund due to the tight fiscal situation".
Transport Cabinet Secretary Davies Chirchir while appearing before Parliament for vetting a few weeks ago defended the Sh246 billion deal with the Indian firm over the expansion and takeover of the Jomo Kenyatta International Airport insisting that it is beneficial to the country.
"This is an off-balance sheet upgrade of the Kenya Airports Authority. If we can't do it as the government, can we allow a private sector player to do it at a reasonable or competitive cost and return on investment?" Mr Chirchir said.
But KAWU has dismissed the assertions by the government insisting that the role of refurbishing the airport should be taken up by the Kenya Airports Authority (KAA).
“Is there a justification why the KAA is going through the Public-Private partnership when it has resources? KAA is one of the few profit-making parastatals. It has its own money. Why should KAA go the PPP way yet it has the resources. It has the money to invest in the modernization of the airport. Adani is now saying they are coming to refurbish and manage. Are we saying that KAA cannot refurbish the airport? We are being told that Adani wants to use the JKIA title deed to secure a loan from the middle East. What makes it impossible for KAA to secure a facility if they think they need a loan. Why should you use a third party to secure the loan?” Mr Ndiema posed.
