KENYA UNION OF COMMERCIAL, FOOD & ALLIED WORKERS v QUEENSWAY PROPERTIES LTD [2002] KEELRC 36 (KLR)
The bottom line
#Kenya's Industrial Court granted workers a 10% yearly raise and new funeral benefits but rejected extreme union demands lacking evidence.
What this practically means
#Executive summary
#Key legal issues
#General wage increase
Company's offer of 10% per year (20% over two years) awarded; Union's 160% demand rejected as unreasonable
The EPD report established that consumer price indices for the middle income group rose 14.5% over the period, entitling employees to full compensation of 7.25% per year. The Company's offer of 10% per year already exceeded this entitlement. Considering the Company's poor business performance and net losses, the Union's 80% per year demand was described as wild, high and unreasonable.
House allowance
Awarded at Kshs.1,000/= per month, improving the Company's offer of Kshs.900/= by Kshs.100/=
Wage Guideline (iv) entitles employees to a house allowance increase of half the consumer price indices rise. Section 9 of the Employment Act obliges employers to provide reasonable housing or sufficient rent. Evidence showed employees paying Kshs.2,000-3,000/= monthly rent, forcing them to dig deeper into their pockets, justifying an improvement over the Company's offer.
Leave travelling allowance
Awarded at Kshs.750/= per annual leave, between the current Kshs.600/= and the Union's demand of Kshs.1,500/=
The allowance is personal to the employee, not the family. Considering unpredictable escalating transport costs, the Court raised the collective agreement rate of Kshs.600/= to Kshs.750/=, rejecting the Union's demand of Kshs.1,500/= which was based partly on family travel costs.
Funeral expenses
New clause awarded: Company to contribute Kshs.15,000/= towards funeral expenses of an employee who dies in employment
Nine employees died between 1995 and 2000. The Company had previously contributed voluntarily. To foster industrial peace and avoid uncertainties and confrontation, the Court fixed a contribution of Kshs.15,000/=, half the Union's demand of Kshs.30,000/=, consistent with its earlier observation in the Eveready Batteries case.
Legal principles established
#- The primary objective in deciding industrial disputes on wage increases is the restoration of peace, harmony and goodwill in the industry, doing justice to the interests of both labour and capital
- Employees are entitled to full compensation for rises in consumer price indices; under Wage Guideline (iv) house allowance increase is a half of the consumer price indices rise
- Leave travelling allowance is personal to the employee and does not extend to the employee's family
- It is proper for an employer to share the cost of bereavement as a mark of concern, fostering industrial peace
Court orders
#- 1.General wage increase of 10% each year, or 20% for the two years' period, as offered by the Company
- 2.House allowance increased to Kshs.1,000/= per month (the Company's offer of Kshs.900/= improved by a further Kshs.100/=)
- 3.Leave travelling allowance awarded at Kshs.750/= when an employee proceeds on annual leave
- 4.Company to contribute Kshs.15,000/= towards funeral expenses of an employee who dies while in employment
- 5.Union's demands on redundancy severance pay, retirement/gratuity and long service award rejected
- Jurisdiction invoked
- Trade Disputes Act, Cap. 234, Sections 14(7) and 14(9)(e) - Notification of Dispute with statutory certificate from the Labour Commissioner
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- KENYA UNION OF COMMERCIAL, FOOD & ALLIED WORKERS v AVERY KENYA LTD [2003] KEELRC 9 (KLR)[2003] KEELRC 9 (KLR)26 Mar 2003followed
Cite this brief
#Cite this brief
Caselaw, "KENYA UNION OF COMMERCIAL, FOOD & ALLIED WORKERS v QUEENSWAY PROPERTIES LTD [2002] KEELRC 36 (KLR)", Case Analysis (2002). Cause No. 96 of 2000. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/36/eng@2002-04-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.