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ELRCDismissedCause - Notice of Motion dated 4th September 2015 (Industrial Court, Nairobi)· [2015] KEELRC 460 (KLR)

Kenya Airline Pilots Association v Kenya Airways Limited [2015] KEELRC 460 (KLR)

Industrial Court (Employment and Labour Relations Court)
30 September 2015
4,815 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court refused to stop Kenya Airways from selling its Boeing 777 planes because the pilots' union's fears of job losses were too speculative.

What this practically means

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Executive summary

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The Kenya Airline Pilots Association, a registered trade union representing pilots, flight engineers and flight navigators employed by Kenya Airways, moved the Industrial Court by Notice of Motion dated 4th September 2015 under section 12(3)(i) and (viii) of the Industrial Court Act, seeking to restrain the airline from disposing of or selling its B777-200 and B777-300 aircraft pending investigations by the government and the McKinsey and Seabury consultants. The union argued the sale threatened its members' rights to fair labour practices, could render them redundant without compensation, and was economically unsound. Kenya Airways opposed, stating the aircraft were leased with lessors' overriding interests, the sale was a board-approved commercial turnaround decision, no redundancy had been declared, and the union's claim was speculative. The court, Mbaru J, applied the Giella v Cassman Brown principles and the stricter test for mandatory interlocutory injunctions from Shepherd Homes, Kenya Breweries and Locabail, plus the employment-specific criteria in Dr. Anne Kinyua. It found the employment contracts subsisting, no redundancy commenced, and the feared termination or compensation claims futuristic, speculative and uncertain, compensable under sections 40 and 49 of the Employment Act. The application was dismissed with costs in the cause, the suit remaining alive for prosecution.

Key legal issues

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01

Whether a prima facie case was established

Holding

No prima facie case was established; employment contracts subsist and no redundancy or termination has commenced

Reasoning

The court found the employment relationship intact, regulated by a CBA, and the apprehended redundancy merely speculative. The employer's decision to dispose of leased aircraft was a proprietary/commercial decision not shown to be unlawful, and the employees' interests could be secured through statutory remedies rather than restraint of asset disposal.

p. 5
02

Irreparable loss and balance of convenience

Holding

Neither irreparable loss nor the balance of convenience favoured the Claimant

Reasoning

Any redundancy would be governed by section 40 and unfair termination by section 49 of the Employment Act, providing adequate compensation remedies. Stopping the sale to secure a future, unconfirmed interest would not serve the interests of justice, and the Respondent would suffer losses from abortive disposal.

p. 6
03

Protection of employees who litigate against employers

Holding

The court cautioned that the Claimant members' employment must not be frustrated for instituting the claim, citing section 46(h) of the Employment Act

Reasoning

While dismissing the application, the court affirmed that the suit remains alive and that initiating legal proceedings against an employer does not constitute a fair reason for dismissal or disciplinary penalty under section 46(h) of the Employment Act.

p. 7

Legal principles established

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  • In employment and labour relations matters, a party seeking interlocutory orders must, in addition to the Giella principles, demonstrate the additional employment-specific grounds set out in Dr. Anne Kinyua v Nyayo Tea Zone Development Corporation
  • A mandatory interlocutory injunction will not be granted in the absence of special circumstances and only in an unusually strong and clear case
  • An interdict cannot be granted for an indefinite, open-ended period; the restraint must be commensurate with a definite threatened wrong

Court orders

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  1. 1.The application dated 4th September 2015 is dismissed
  2. 2.Costs shall be in the cause
  3. 3.The suit shall remain alive for prosecution

Authorities

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Legislation

  • Industrial Court Act [Employment and Labour Relations Court Act]section 12(3)(i) and (viii)
  • Labour Relations Actnull
  • Employment Actsections 40, 46(h) and 49
  • Constitution of KenyaBill of Rights
  • Halsbury's Laws of EnglandVol. 24, 4th Edition, paragraph 948

Cases cited (6)

  • Giella v Cassman Brown & Co. Ltd
    [1975] E.A. 358
  • Shepherd Homes Ltd v Shadahu
    (1971) 1 Ch 34
  • Kenya Breweries Ltd & 2 Ors v Washington Okeyo
    (2002) eKLR
  • Locabail International Finance Ltd. v. Agroexport and others
    [1986] 1 All ER 901
  • Polyoak (Pty) Ltd v Chemical Workers Industrial Union & others
    (1999) 20 ILJ 392 (LC)
  • Dr. Anne Kinyua versus Nyayo Tea Zone Development Corporation
    Cause No.1065 of 2012
Jurisdiction invoked
section 12(3)(i) and (viii) of the Industrial Court Act [Employment and Labour Relations Court Act]

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 Airline Pilots Association v Kenya Airways Limited [2015] KEELRC 460 (KLR)", Case Analysis (2015). Cause - Notice of Motion dated 4th September 2015 (Industrial Court, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/460/eng@2015-09-30

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