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ELRCAllowedCause No. 86 of 2001· [2002] KEELRC 24 (KLR)

KENYA BUILDING, CONSTRUCTION, TIMBER, FURNITURE & ALLIED INDUSTRIES v RAI PLYWOOD KENYA LTD [2002] KEELRC 24 (KLR)

Industrial Court of Kenya
7 March 2002
CCCharles P. Chemmuttut
632 words in judgment
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The bottom line

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Kenya's Industrial Court turned a signed settlement into a binding award, granting 58 plywood factory drivers their 15% wage increase under an existing agreement.

What this practically means

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Executive summary

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This was a trade dispute referred to the Industrial Court of Kenya at Nairobi by the Minister for Labour on 5th September 2001 under Section 8 of the Trade Disputes Act, Cap. 234, accompanied by a statutory certificate of unresolved dispute from the Labour Commissioner under Section 14(9)(e). The issue in dispute was the Respondent Company's refusal to implement a wage increase for 58 drivers (the grievants) in violation of a collective bargaining agreement. Procedurally, the Union filed its memorandum on 12th November 2001 but the Company filed no reply. When the matter came up for hearing on 14th February 2002 the parties indicated a possible compromise, and the dispute was listed for further mention on 7th March 2002. On that date the parties presented a memorandum of settlement dated 6th March 2002, signed on behalf of the Union by the National General Secretary, Assistant National General Secretary, Branch Secretary and Chief Shopsteward, and on behalf of the Company by the Personnel Manager, witnessed by a Senior Executive Officer of the F.K.E. The settlement provided that all the grievant drivers be paid a 15% wage increase as per the Agreement of 1st July 1998, with payment of all dues constituting a full and final settlement of the dispute. Chemmuttut J found the terms fair and reasonable, entered an award by consent in the terms of the settlement, and closed the file. No costs order was made.

Key legal issues

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01

Whether an award by consent should be entered on the parties' memorandum of settlement

Holding

The Court found the settlement terms fair and reasonable and entered an award by consent in the terms of the memorandum of settlement dated 6th March 2002.

Reasoning

The dispute, referred by the Minister for Labour under Section 8 of the Trade Disputes Act, concerned refusal to implement a wage increase for 58 drivers in violation of a CBA. After the matter was listed for hearing, the parties indicated a possible compromise and subsequently presented a signed memorandum of settlement, signed by union officials and the Company's Personnel Manager and witnessed by a Senior Executive Officer of F.K.E. The Judge considered the terms fair and reasonable and awarded as prayed for.

p. 2

Legal principles established

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  • Where parties to a referred trade dispute present a signed memorandum of settlement, the Industrial Court may enter an award by consent if satisfied the terms are fair and reasonable.

Court orders

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  1. 1.An award by consent entered in terms of the memorandum of settlement dated 6th March 2002, namely that all the grievant drivers shall be paid a 15% wage increase as per the Agreement of 1st July 1998
  2. 2.After payment of all dues, the settlement to form the full and final settlement of the dispute
  3. 3.File closed

Authorities

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Legislation

  • Trade Disputes Act, Cap. 234, Laws of KenyaSection 8
  • Trade Disputes Act, Cap. 234, Laws of KenyaSection 14(9)(e)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap. 234, Laws of Kenya (reference by the Minister for Labour), with statutory certificate under Section 14(9)(e)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "KENYA BUILDING, CONSTRUCTION, TIMBER, FURNITURE & ALLIED INDUSTRIES v RAI PLYWOOD KENYA LTD [2002] KEELRC 24 (KLR)", Case Analysis (2002). Cause No. 86 of 2001. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/24/eng@2002-03-07

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.