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ELRCPartially AllowedPetition No. 4 of 2015 (Nakuru)· [2016] KEELRC 1760 (KLR)

Kenya Petroleum Oil Workers Union v Kenya Pipeline Company Ltd, Salaries and Remuneration Commission & Attorney General (Petition 1 of 2015) [2016] KEELRC 1760 (KLR)

Employment and Labour Relations Court
29 January 2016
3,633 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a trade union branch can sue, but state corporation pay deals only bind once the Salaries and Remuneration Commission's advice is built in and the CBA is registered.

What this practically means

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Executive summary

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The Kenya Petroleum Oil Workers Union, later amended to its Nakuru Branch, petitioned against Kenya Pipeline Company Ltd, the Salaries and Remuneration Commission (SRC) and the Attorney General, alleging violation of constitutional rights in the negotiation and execution of a collective bargaining agreement (CBA). The Petitioner sought enforcement of an agreement reached on 31 July 2014 rather than the CBA signed on 14 November 2014, contending that the SRC's advice fixing a 4-year cycle, a 20% salary increase spread over 4 years and unchanged allowances violated Article 41, amounted to an unfair labour practice and that the CBA was signed under duress. The 1st Respondent denied duress; the SRC asserted its constitutional mandate under Article 230(4)(b) and that its advice was binding under Article 259(11). The Court held that registration of branches under the Labour Relations Act gives them juridical personality to sue in constitutional petitions. Following the Court of Appeal's decision in the KNUT case, the Court held that employees of state corporations are public officers, that SRC advice must be sought and, once obtained, binds all persons and state organs, mooting several of the Petitioner's issues. The 31 July 2014 agreement conferred no enforceable rights as it was never reduced into a registered CBA. The Petition largely failed, but the Court ordered the CBA of 14 November 2014 presented for registration forthwith, the 1st Respondent to compute and file arrears within 15 days, and fixed mention for compliance. Each party was ordered to bear its own costs.

Key legal issues

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01

Capacity of a trade union branch to sue

Holding

A registered branch may commence and sustain legal proceedings alleging violation of constitutional rights

Reasoning

Sections 2, 21 and 25 of the Labour Relations Act provide for registration of branches. Registration gives branches juridical personality distinct from the national union. Articles 22 and 258 of the Constitution allow any person, including associations acting in the interest of their members, to institute rights proceedings; Article 260 defines person to include incorporated and unincorporated bodies. The objection therefore fails in constitutional petitions.

p. 5
02

SRC mandate and binding nature of its advice

Holding

SRC has mandate under Article 230(4)(b) to advise on remuneration of public officers, including employees of state corporations, and its advice is binding

Reasoning

The 1st Respondent is a public corporation under the State Corporations Act and its employees fall within the broad definition of public officer in Article 260. The Court of Appeal in the KNUT case held that SRC's advice must be sought before concluding a CBA involving public officers and that such advice binds all persons and state organs. That holding binds this Court under stare decisis, rendering the Petitioner's contrary issues moot.

p. 6
03

Status of the 31 July 2014 agreement and salary reversals

Holding

The 31 July 2014 agreement conferred no enforceable rights as it was not reduced into and registered as a CBA

Reasoning

A collective bargaining agreement becomes legally enforceable only upon registration under section 59(5) of the Labour Relations Act. Since the 31 July 2014 agreement was never reduced into a CBA and SRC input had not been factored in, the salary arrears claims were inchoate and moot per KNUT. The proper course is registration and implementation of the CBA signed on 14 November 2014.

p. 7

Legal principles established

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  • Registration of a branch of a trade union clothes the branch with juridical personality to sue, especially in constitutional petitions
  • The advice of the Salaries and Remuneration Commission on remuneration of public officers is binding (per Court of Appeal in KNUT)

Court orders

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  1. 1.The collective bargaining agreement signed on 14 November 2014 be presented for registration forthwith
  2. 2.The 1st Respondent computes the arrears arising out of the collective bargaining agreement and files the same with Court within 15 days
  3. 3.The Petition be mentioned on 19 February 2016 to confirm compliance and for further directions
  4. 4.Each party to bear own costs
Jurisdiction invoked
Article 41 and Articles 22 and 258 of the Constitution; 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 Petroleum Oil Workers Union v Kenya Pipeline Company Ltd, Salaries and Remuneration Commission & Attorney General (Petition 1 of 2015) [2016] KEELRC 1760 (KLR)", Case Analysis (2016). Petition No. 4 of 2015 (Nakuru). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1760/eng@2016-01-29

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