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ELRCDismissedCause No 73 of 2013· [2018] KEELRC 255 (KLR)

Kenya Engeneering Workers Union v Eldoret Steel Mills Limited [2018] KEELRC 255 (KLR)

Employment and Labour Relations Court
6 December 2018
MNMathews N. Nduma
504 words in judgment
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The bottom line

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Kenya's Employment Court dismissed a union's collective bargaining dispute because the company had been wound up and all workers already paid severance.

What this practically means

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Executive summary

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The Claimant Union filed suit on 26th February 2013 seeking resolution of a deadlocked Collective Bargaining Agreement with the Respondent, following failed conciliation before a Ministry of Labour conciliator, Mrs. Chemursoi, and the issuance of a certificate of unresolved dispute on 20th November 2012 covering items 1 to 10 of the CBA. The parties had a recognition agreement dated 2nd December 2011. The Respondent countered the Union's demands with reduced offers: 15% basic salary increment against the proposed 25%, Kshs.500 leave travelling allowance against Kshs.3,000, lower meal and overnight allowances, one month salary in lieu of redundancy notice and 15 days severance pay per completed year of service. The CPMU of the Ministry of Labour prepared an Economic Investigation Report for the court, which revealed that the Respondent company was wound up on 4th June 2014, all 127 workers were paid their severance benefits, union officials were present, and the company was sold to Western Steel Mills Limited for Kshs.185 Million. The Claimant union could not rebut these findings, the court holding that official government reports are presumed to reflect the true status unless the contrary is proved. Finding the suit overtaken by events, the court, Mathews N. Nduma, Judge, dismissed the suit with no order as to costs on 6th December 2018.

Key legal issues

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01

Effect of the Respondent's winding up on the CBA dispute

Holding

The suit was dismissed as overtaken by events

Reasoning

The CPMU report established that the Respondent company was wound up on 4th June 2014, all 127 workers were paid their severance benefits, and union officials were present and aware of the situation. The company premises were sold to Western Steel Mills Limited for Kshs.185 Million. The Claimant union was unable to present evidence contrary to the Ministry of Labour findings, and government reports are presumed accurate unless rebutted.

p. 2
02

Evidential weight of the Ministry of Labour Economic Investigation Report

Holding

The report was accepted as a reflection of the true status of the company

Reasoning

The CPMU, Ministry of Labour, visited the Respondent, received pleadings from the parties and prepared an Economic Investigation Report to assist the court. The Claimant union could not present contrary evidence, and the court held that official government reports are presumed to be a reflection of the true status unless the contrary has been proved.

p. 2

Legal principles established

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  • Official reports from Government are presumed to reflect the true status unless the contrary is proved

Court orders

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  1. 1.The suit is dismissed
  2. 2.No order as to costs
Jurisdiction invoked
Economic dispute over a deadlocked Collective Bargaining Agreement reported to the Ministry of Labour and certified unresolved

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 Engeneering Workers Union v Eldoret Steel Mills Limited [2018] KEELRC 255 (KLR)", Case Analysis (2018). Cause No 73 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/255/eng@2018-12-06

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