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ELRCDismissedCause No 1174 of 2015· [2016] KEELRC 707 (KLR)

Amalgamated Union of Kenya Metal Workers v General Motors East Africa Limited [2016] KEELRC 707 (KLR)

Employment and Labour Relations Court
23 September 2016
ANAbuodha Jorum Nelson
1,654 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused to stop General Motors from retiring workers at 55 because raising it to 60 was only a proposal, not an agreed contract term.

What this practically means

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Executive summary

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The claimant union moved the Employment and Labour Relations Court by Notice of Motion dated 27th July 2015 seeking temporary injunctions restraining the respondent employer from retiring union members aged 55 years, pending hearing of an application and of the main cause. The dispute arose from failed negotiations for a new Collective Bargaining Agreement after the CBA of 1st January 2013 (a 24-month term) expired; the claimant had proposed enhancing the retirement age from 55 to 60 years among other proposals. After conciliation ordered by the Cabinet Secretary for Labour failed, a Certificate of Disagreement was issued on 22nd May 2015 and the dispute was referred to the court. The respondent opposed, contending that retirement age had always been 55 years in the post-CBA period, that the proposed enhancement was unagreed and unenforceable, and that the Staff Retirement Benefits Scheme was a trust managed by trustees independent of the employer and did not constitute contractual terms of employment. The court held that clause 27 of the CBA keeps existing terms in force until a new agreement is signed, that clause 22 sets retirement at 55 years, and that the enhancement to 60 years was a mere proposal incapable of conferring a right protectable by injunction. The court declined to interdict the employer from enforcing the existing CBA merely because the union hoped for a favourable ruling in the main claim. The application was dismissed with costs on 23rd September 2016 (Abuodha Jorum Nelson, Judge).

Key legal issues

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01

Whether the claimant established a prima facie case with probability of success and irreparable harm justifying an interlocutory injunction

Holding

No - the retirement age of 55 years is set by the operating CBA; the proposal to enhance it to 60 years was not agreed and confers no enforceable right

Reasoning

The court reviewed the claim to assess whether the applicant would suffer irreparable loss not compensable by damages and whether a prima facie case existed. Clause 27 of the CBA keeps existing terms in force until a new agreement is signed; clause 22 sets retirement at 55. Since the 60-year retirement age was merely a proposal in collapsed negotiations, no right capable of being injured existed. The court declined to prevent the employer from enforcing the current CBA.

p. 4

Legal principles established

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  • Parties remain bound by the terms of the existing Collective Bargaining Agreement until a new one is signed, whether voluntarily or by court order
  • A mere proposal in negotiations does not confer a right protectable by injunction
  • An employer may not be interdicted from enforcing an existing CBA merely because there is hope the court will rule in the union's favour on future terms

Court orders

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  1. 1.The Notice of Motion dated 27th July 2015 is found without merit and is dismissed with costs

Authorities

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Legislation

  • Retirement Benefits ActNot specified (registration of the scheme under the Act referenced)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over trade disputes referred after failed conciliation (Labour Relations Act framework; conciliator's Certificate of Disagreement issued 22nd May 2015)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Amalgamated Union of Kenya Metal Workers v General Motors East Africa Limited [2016] KEELRC 707 (KLR)", Case Analysis (2016). Cause No 1174 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/707/eng@2016-09-23

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