Senior managers of the National Hospital Insurance Fund (NHIF) have taken to court alleging salary discrimination that left some members in the lower cadre earning more than them.
In a case brought under expedited testimony, management employees claim that salary increases over the years have favored unionized employees negotiating better pay packages.
Gwaragwara Nkosi and Khadija Ali said unionized employees negotiated two collective bargaining agreements — for the years 2017-2021 and 2021-2023 — that gave them significant salary increases of 38 percent and 15 percent, respectively, while management employees received significant bonuses. An increase of 16 percent.
“The above disproportionate increase has resulted in a significant gap between the salaries of union staff and management, amounting to approximately Sh30,000 above the salaries of management staff at certain levels, particularly management staff at (job grades) HF8 and HF9,” the duo said in the petition.
Despite their dedication and contribution to the organization, they have been systematically marginalized in salary increases compared to their union counterparts, the petitioners said.
They noted that in 2016, the World Bank facilitated negotiations that led to a severance agreement within the National Health Insurance Fund, which led to the early retirement of some employees.
In 2017, unionized employees at job grade HF7 and below successfully negotiated a pay increase. There was another increase in 2021.
“The unequal distribution of salaries not only affects the current financial well-being of management employees, but also has implications for their future, including their absorption into new structures, deployment in public services, and retirement plans,” the petitioners stated.
They said in court papers that the looming third CBA would widen the salary gap, adding to the frustration and distress felt by management employees.
“During the said negotiations, management employees at HF8 to HF13 were overlooked, creating a huge disparity between their salaries and those of the unionized employees, which is discriminatory against the rights of management employees,” Nkosi said in his affidavit.
Labor laws do not allow management employees to join labor unions.
Senior employees said that while unionized workers from HF1 to HF7 received salary increases to warn of economic factors such as rising inflation and taxes, they did not receive any wage increase.
“The discrimination constitutes a violation of their fundamental rights and freedoms guaranteed by the Constitution. These rights, including the right to fair labor practices and the right to equal protection and benefit of the law, are an integral part of preserving individual dignity and promoting social justice,” the petition said.
The court was told that the Social Health Insurance Act (SHIA) provides for NHIF workers to be absorbed into the social health body or deployed to the public service.
But the disparity in salaries will affect them if they are redeployed with lower salaries or choose to retire.
“There is a clear violation of the Public Service Pay and Benefits Guidelines 2022, Section 3.2.2 which states that pay disparities arising from the salary structure must be harmonized,” the duo stated in court documents.
Moreover, upon retirement, unionized employees negotiated better terms for their redundancy, while managerial employees were not taken into account, including voluntary early retirement incentive concessions.
They want the court to issue an order halting the transfer from the NHIF to the SHA pending the hearing and determination of the petition or an order compelling the Salaries and Remuneration Commission (SRC) to recommend an increase in their salaries.
“That an injunction be issued restraining the Transitional Committee either by itself or its agents or employees from submitting its report to the President, the Ministry of Health, the Social Health Authority Board and the National Health Insurance Fund Board, pending the hearing and determination of the petition,” the petitioners urged.
