Kakira Sugar Works Ltd (KSW) laid-off its entire security department of 142 people, said a report by The Monitor of Kampala posted on the Internet on 4 February.
Workers got their termination letters on 24 January; and the company will pay them a January salary, three months pay in lieu of notice of redundancy, any outstanding leave and travel allowances and gratuity to those with more than eight years of service.
The workers have accused management of going against a 1998 agreement that it signed with the National Union of Agricultural and Plantation Workers (NUPAW) – Uganda. The workers argue that whereas the agreement stipulates that redundant workers are entitled to three months salary in lieu of notice and another three months salary, the company has only offered three months’ wages in lieu of notice. They also said that the firm did not follow the principle of first in last out, as stipulated in the agreement; and that allowances for transport, settlement, responsibility and housing, had also not been paid.
Kakira Sugar Works outsourced the security services to Industrial Security Services (ISS), which, as Kakira, is also a subsidiary of the Madhvani Group of Companies.
As reported in the January 2005 issue of the Sugar Worker (also posted on this site), Kakira Sugar Works has announced an expansion plan to double its annual production to about 150,000 tonnes of sugar by 2010.