Flower farm, Oserian, has sent 800 out of its total workforce of 1,200 on unpaid leave. The move seeks to ensure the firm remains afloat even after the COVID-19 pandemic dipped flower exports.
This development unfolds after the workers declined the farm’s offer to defer their salary payments by 50% until the end of coronavirus to ease the pandemic’s financial impact.
Because recent legal changes discourage pay cuts and layoffs due to the effects of the virus, unpaid leaves are the only remaining options for firms that are struggling financially.
According to the Kenya Flower Council, restrictions to movements, especially to Europe, have slashed daily orders by half. Europe accounts for 70% of Kenya’s cut-flower exports.
Although the demand for flowers slightly rose recently during Mother’s Day, a shortage of experienced labor in the farm to pluck and park the roses saw the company lose about 30% of what they would have sold on that day.
However, the production has already reduced to where it was before Mother’s Day.
Already, the management staff at Oserian have been taking a 50% deferred salary since February.
In March, the horticulture sector recorded a KSh8 billion ($75.4 million) net loss due to the adverse effects of COVID-19. The flower industry, in particular, was the hardest hit following the closure of the Dutch auction and suspension of exports to the EU, which is its largest market.
The flower industry is among Kenya’s largest foreign exchange-earners. Kenya is the world’s 4th largest flower exporter. It has created jobs for close to 150,000 people. In 2018 alone, cut flowers earned the country KSh113 billion, and another KSh104 billion in 2019.
Oserian is a flower farm on the south shores of Lake Naivasha, Nakuru County, Kenya. It is Africa’s largest rose producer.
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