Looming Workers Layoffs as Moi University Financial Woes Increase
Workers to go for Compulsory Redundancy as Moi University Campuses are Closed
The operational cost in moi university has become unsustainable causing the administrators to ponder on possible layoffs of some of it’s staff so that they can lower the cost. This has caused panic and tension in the institution.
University wage bill has been growing for the past few years and has become unsustainable. Isaac Kosgei the vice chancellor of the university noted that operational cost alone takes up 70% of funds from the exchequer.
Since 2015 the enrollment of students have declined greatly from 50,000 in to 27,000 being last year’s enrollment. Some campuses have been closed, and government funding has also decreased making financial woes to increase.
Collective bargaining agreements (CBAs) with staff unions had also not been fully funded.
With low enrollment and closure of non-viable campuses, the university maintained all the workers despite the decline in revenue, this is according to an internal memo.
The Vice Chancellor noted that the university is considering reducing the human resource through ‘compulsory redundancies’.
The memo read in part that, this is to inform you of impending workers redundancy due to continued financial strain by the university to pay wage bill … and assign the human resources to the existing workload.
If it shall deem necessary, staff will be selected for redundancy on the basis of set criteria. The university will keep you posted on new developments, the memo read.
Vice chancellor disclosed that the management had a meeting with the unions and informed them about the impending redundancies. The University Academic Staff Union and the county labour office have been notified as well.
Uasu officials were invited but declined to attend the meeting saying that the issues administrators wanted to discuss with them were pending in court.
