The Kenya Union of Sugar Plantations and Allied Workers (KUSPAW) has withdrawn a case it had filed in court opposing plans to lease out five cash-strapped state-owned sugar millers to private investors.
Slotted for leasing are; Chemelil, Muhoroni, Miwani, Muhoroni, Sony and Nzoia Sugar factories.
The Union argued that these millers owed workers salaries running into billions of Shillings and that it had been left out of the leasing process.
KUSPAW has signed a memorandum of understanding with Lake Region Economic Bloc(LREB) Governors Wycliffe Oparanya(Kakamega) and Prof Anyang Nyong’o( Kisumu), to withdraw the suit against the state.
The parties agreed that the said millers settle all pending salaries before the leasing process kicks in.
In its arguments before the Labour Court in Nairobi, the Union said it was concerned about lack of a definite plan to settle salaries owed to workers in these milling firms.
The State has already waived KSh 62.5 Billion debts owed by 5 of its sugar mills, setting the stage for their revival with the leasing option being chosen as the most viable alternative.
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