Awendo: Hundreds of employees at Sony Sugar Company are bracing for massive layoffs following a change in management under a lease agreement. The new leaseholder, Busia Sugar Industries, plans to reduce the workforce to revive the struggling factory, which has been operating at a significant financial deficit.
According to Kenya News Agency, a redundancy circular sent to the government and union officials has incited anxiety among staff, prompting pleas for the state to intervene and ensure humane layoffs. Sony, like other former partially government-owned sugar factories, has faced financial difficulties, with the government previously intervening to help it continue operating. The National Treasury once paid over Sh500 million to clear farmers’ arrears, part of an accumulated debt of over Sh800 million, in an unsuccessful effort to revive the factory.
Faced with the choice between closure and leasing, the state opted to lease the factories to private investors for 30 years. This decision has left workers at Sony, Chemelil, Nzoia, and Muhoroni concerned about their futures. Interviews with Sony workers reveal deep-seated fears and anxieties over their impending job losses, with some expressing the stress and hardship they anticipate facing.
Joseph Oyiera, a worker at Sony, described the situation as the worst experience one could face, especially in challenging economic times. He lamented the premature job loss, fearing it would lead to severe stress and difficulty in supporting families. Caroline Otieno, from the finance office, expressed her disappointment after initial optimism when the government cleared salary arrears, only to learn of the factory’s lease to a private investor who plans to eliminate many jobs.
Former County Executive Committee member and sugar cane farmer, Dr. Isca Oluoch, urged for amicable solutions to help workers integrate into their new social realities. She emphasized that stakeholders should prioritize empathy and active participation to address employee concerns. Without proper guidelines for societal integration, she warned of potential mental health issues among affected employees.
The Kenya National Federation of Sugarcane Farmers Union’s South Nyanza branch, represented by Argwings Adongo, highlighted the broader implications of the layoffs, noting the potential for increased crime and economic hardship in the region. He emphasized that many employees are the primary breadwinners for their families, and job loss could trigger negative outcomes within the community.
Despite assurances of entitlements under Section 40 of the Employment Act and applicable collective bargaining agreements, employees remain concerned about their uncertain future. The situation underscores the challenges faced by the workers who have dedicated themselves to the company amidst numerous operational issues, and the broader impact on their communities and families.