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The government announced yesterday that it is working with social partners on modalities aimed at keeping the country afloat in the wake of the coronavirus crisis that has hit the entire economic sphere hard.

Labour Cabinet Secretary Simon Chelugui said critical measures include instituting pay cuts where necessary  to manage life beyond the coronavirus challenge.

Chelugui warned that job cuts may be imminent as businesses are struggling to stay afloat, a situation he said will only be cushioned by developing strong mitigation measures.

“Our focus is post-coronavirus because there will be life after that. We are preparing for it and will call for sacrifice including pay cuts for some of us or foregoing our benefits to resuscitate our economy.

We will have a sitting with National Treasury to come up with a solution,” said Chelugui.

Stated he: “Unemployment, redundancies and job cuts are imminent, hence the Government is holding dialogue with stakeholders to minimise the pain and mitigate the challenges.

What we have done as a ministry is to call all stakeholders and try to mitigate the pain.”

Chelugui said that National Treasury projects the country’s economic growth will drop to about 3.6 per cent, down from the anticipated 6.1 per cent during this period, to become the lowest rate in recent years.

He disclosed that a review of the projected growth in various sectors including tourism, manufacturing, transport, agriculture and wholesale and retail is being undertaken.

It is against this backdrop, the Cabinet Secretary observed, that the State is working on mitigation measures to come up with practical suggestions and solutions to keep the economy alive, coronavirus notwithstanding.

“We are discussing modalities to postpone negotiations surrounding salary increment to be able to accommodate both the employers and employees. We also urge all employers and employees to strictly follow Government advisory on keeping coronavirus at bay,” said Chelugui.

Current challenge

 The Minister said the current challenge has not only hit hard the government but also employers and employees alike hence the need for parties to cede ground to find lasting solutions beyond the coronavirus crisis.

Chelugui also urged employers to utilise the various options available to protect employees as opposed to redundancies or lay offs and instead adopt measures like taking leave on agreeable terms.

 He made the remarks after meeting Federation of Kenya Employers, Central Organisation of Trade Unions,  Universities Academic Union Staff (UASU), Kenya Flower Council and Trade Union Congress Kenya (TUC-K) officials  in his office yesterday.