Kenya Airways (KQ) has fired over 70 contracted staff affiliated to Career Directions Limited (CDL), a recruitment firm.
Media reports indicate that the most affected are those in ground handling. It is suspected that the staffers were sent packing after the company set new rules that would allow the airline investigate the employees’ backgrounds before they are hired directly.
CDL is among four other firms that recruit for KQ including Insight Management, Tradewinds Aviation Services, Preferred Personnel Africa and Strami.
In 2017, the airline required that all employees on contract should sign consent forms to allow Kenya Airways investigate their backgrounds before being hired directly by the airline.
KQ, after consent, would get information from landlords of workers, borrowing history from the credit reference bureau TransUnion, social media and criminal records.
Last week, the company announced Jambojet CEO Allan Kilavuka as the new acting CEO following the exit of Sebastian Mikosz.
KQ has been making losses since 2014 after a failed expansion drive, among other factors.
In July this year, MPs voted to nationalise the airline, which is 48.9 percent owned y government and 7.8 peercent held by Air France-KLM.
Two weeks ago, KQ issued a profit warning on its earnings for the year ending 2019.
This, according to KQ Board Chair Michael Joseph, is based on the forecasted results for the year ending December 31.
In a profit warning message to investors, the troubled carrier attributed the loss to stiff competition.