KENYA SHOE & LEATHER WORKERS’ UNION v BATA SHOE CO. (K.) LTD [2004] KEELRC 8 (KLR)
The bottom line
#Kenya's Industrial Court split the difference between Bata Shoe and its workers' union: pay rises and better benefits, but companies control how they pay.
What this practically means
#Executive summary
#Key legal issues
#General wage increment and method of pay
Conversion to monthly pay rejected; wage increase of 6% per year (12% over two years) awarded, improving the Company's offer of 3% per year
The court held pay method is a management prerogative presumed to know how work can be done most conveniently, beneficially and economically. On the increment, the Union's 38%/35% demand was unrealistic given the Company's losses, cheap imports and the EPD report, but the Company's 6% total offer was too low, so an equitable 12% over two years was awarded.
House allowance
Rates increased by Kshs.120 across the board to Kshs.1,120 (Limuru) and Kshs.1,207.50 (Mombasa) per month
Relying on Section 9 of the Employment Act obliging employers to provide reasonable housing or pay sufficient rent, and Wage Guideline 2(ii) and (iv), the court found decent accommodation scarce and unaffordable for low-income employees and hiked the allowances modestly rather than granting the Union's Kshs.2,000 demand.
Leave travelling allowance
Awarded Kshs.1,250 when an employee proceeds on annual leave, midway between the Union's Kshs.1,800 demand and the Company's Kshs.1,182.50 offer
The EPD report did not show fares for various destinations, so the court exercised its own judgment, taking into account escalating and unpredictable transport costs, and fixed the allowance at Kshs.1,250.
Termination benefits
Terminal benefits enhanced from 15 to 21 days' pay per completed year of service; 10-year qualifying period retained
The court found the Union's demand (30 days' pay and a 3-year qualifying period) unreasonably high and the Company's nil offer unacceptable. Given the training period for shoemakers and other beneficial clauses in the collective agreement, the 10-year period was adequate but the 15-day rate deserved enhancement to 21 days.
Legal principles established
#- Every employer has a statutory duty to provide reasonable housing accommodation to each employee or pay sufficient rent in lieu
- The choice of the method of remuneration of employees (daily, contract or monthly) is a management prerogative
- Wage awards must be guided by the employer's financial capacity and the state of the industry as reflected in the EPD report and Wage Guidelines
Court orders
#- 1.The demand for conversion from fortnightly to monthly system of pay is rejected
- 2.A general wage increase of 6% each year, or 12% for the two years' period, is awarded
- 3.House allowance rates of Kshs.1,000 (Limuru) and Kshs.1,087.50 (Mombasa) are increased by Kshs.120 across the board to Kshs.1,120 and Kshs.1,207.50 per month respectively
- 4.Leave travelling allowance is fixed at Kshs.1,250 when an employee proceeds on annual leave
- 5.On termination of employment, the 15 days' pay for each completed year of service is enhanced to 21 days' pay for each completed year of service, retaining the 10-year qualifying period
- 6.The members of the Court were unable to render a written opinion or advice on request
- Jurisdiction invoked
- Section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234, Laws of Kenya - dispute reported to the Minister for Labour under Section 4 and certified by the Labour Commissioner
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "KENYA SHOE & LEATHER WORKERS’ UNION v BATA SHOE CO. (K.) LTD [2004] KEELRC 8 (KLR)", Case Analysis (2004). Cause No. 66 of 2003. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2004/8/eng@2004-03-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.