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ELRCPartially AllowedCause Number 340 of 2014· [2015] KEELRC 1061 (KLR)

Tailors and Textiles Workers Union v Ashton Apparels [EPZ] Limited [2015] KEELRC 1061 (KLR)

Industrial Court of Kenya at Mombasa
29 May 2015
2,936 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenyan employers cannot force workers to join a union—union shop clauses are unconstitutional, but unions can still collect agency fees from non-members.

What this practically means

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Executive summary

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The Claimant Union, recognised as sole collective bargaining agent under a 5th November 2010 Recognition Agreement following an ex parte Award in Industrial Court Cause Number 40[N] of 2008, claimed the Respondent had failed to deduct and remit Trade Union dues under a Union Shop arrangement. The Respondent denied a valid Recognition Agreement, alleging fraud under police investigation, and argued the Union Shop clause 2(c) compelled non-consenting Employees into Union Membership, violating freedom of association. The Court found a formally valid Recognition Agreement existed: the prior recognition Award had not been overturned, and the fraud allegation, unsupported by any revocation proceedings before the Court or the National Labour Board, did not affect formal validity. On the central issue, the Court held that Union Shop and Closed Shop Agreements are unlawful and unconstitutional in Kenya. Section 4(1) of the Labour Relations Act and Articles 36 and 41 of the Constitution guarantee the right to join or leave a Trade Union, Article 36(2) prohibits compelled association, and Section 5(2) expressly forbids requiring Employees to become Union Members. Clause 2(c) was declared unlawful, unconstitutional, void and unenforceable. The Court distinguished Trade Union dues under Section 48, payable only by signed up Members, from agency fees under Section 49, by which the Union may recover representation costs from non-Members covered by a CBA upon a Labour Minister's order. The Respondent was ordered to deduct and remit dues for all signed up Members, including those on fixed term contracts, with no order on costs.

Key legal issues

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01

Validity of the Recognition Agreement

Holding

There is a formally valid Recognition Agreement in place between the Parties; the allegation of fraud under police investigation does not affect its formal validity

Reasoning

The Court had earlier directed recognition in Nairobi Cause Number 40[N] of 2008 and that decision stood, not having been overturned. The Agreement was executed by the Parties' representatives, is dated and signed, and contains the fundamental clauses required of a Recognition Agreement including provision for modification and termination. The Respondent, if aggrieved, ought to have sought revocation or termination before the Court or the National Labour Board rather than rely on pending police investigations.

p. 3
02

Constitutionality of the Union Shop clause 2(c)

Holding

Clause 2(c), which makes Employees automatic Union Members on completing probation, is unlawful, unconstitutional, void and unenforceable

Reasoning

Section 4(1) of the Labour Relations Act grants every Employee the right to join or leave a Trade Union, anchored on Articles 36 and 41 of the Constitution. Article 36(2) provides that no Person shall be compelled to join an Association. Section 5(2) of the Act expressly prohibits requiring an Employee to become a Trade Union Member. The Union Shop compels Membership and violates freedom of association and the right to work.

p. 5
03

Deduction of dues from Non-Union Members

Holding

The Respondent shall deduct and remit Trade Union dues only in respect of signed up Members; the Claimant may recover representation costs from non-Members through agency fees under Section 49

Reasoning

Section 48 of the Labour Relations Act defines Trade Union dues as subscriptions payable by Members as a condition of Membership, and Section 48(6) excludes Employees who have resigned in writing. The mischief of free-riders is addressed through the Agency Shop mechanism under Section 49, whereby non-Members covered by a CBA may be required to pay agency fees upon a Labour Minister's order. Fixed-term contract status does not excuse deduction for signed up Members.

p. 6

Legal principles established

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  • Union Shop and Closed Shop Agreements are unlawful and unconstitutional in Kenya; Section 5(2) of the Labour Relations Act prohibits compelling Employees to become Trade Union Members
  • Freedom of association includes the right to dissociate; Employees cannot be forced to belong to a Trade Union
  • The problem of free-riders is adequately addressed through agency fees under Section 49 of the Labour Relations Act, not through Union Shop arrangements
  • Trade Union dues are only payable by signed up Members and are not to be deducted in respect of an Employee who has resigned in writing

Court orders

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  1. 1.The Claimant is at liberty to enforce an order for agency fees, rather than enforce a Union Shop Agreement
  2. 2.It is declared clause 2 [c] of the Recognition Agreement is unlawful, unconstitutional, void and unenforceable
  3. 3.The Respondent shall deduct and remit trade union dues with respect to all the signed up Members of the Claimant Union
  4. 4.No order on the costs

Authorities

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Legislation

  • Industrial Court Procedure Rules 2010Rule 27(1)(a)
  • Labour Relations ActSection 54
  • Labour Relations ActSection 4(1)(b) and (c); Section 4(1)
  • Labour Relations ActSection 5(2)
  • Labour Relations ActSection 48; Section 48(1); Section 48(6)
  • Labour Relations ActSection 49; Section 49(5)
  • Constitution of KenyaArticle 36(1); Article 36(2); Article 41; Article 41(2)(c)
  • Industrial Court Act

Cases cited (2)

  • Scientific Research International Technical & Allied Workers Union v. Kenya Agricultural Research Institute & Another
    [2013] e-KLR
  • Aviation & Allied Workers Union v. Air Kenya Express Limited & Another
Jurisdiction invoked
Industrial Court Act 2011 and Labour Relations Act 2007; dispute referred following Certificate of Disagreement from conciliation under the Labour Relations 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, "Tailors and Textiles Workers Union v Ashton Apparels [EPZ] Limited [2015] KEELRC 1061 (KLR)", Case Analysis (2015). Cause Number 340 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1061/eng@2015-05-29

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