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ELRCDismissedNotice of Motion dated 16th July 2018 in the main suit (Cause number not stated in the judgment)· [2018] KEELRC 425 (KLR)

Bakery Confectionery Food Manufacturing and Allied Workers Union (K) v Kenafric Industries Limited [2018] KEELRC 425 (KLR)

Employment and Labour Relations Court
20 December 2018
2,535 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 allowed an employer to proceed with redundancy because it had properly notified the union and labour authorities as the law requires.

What this practically means

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Executive summary

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The Claimant union, by Notice of Motion dated 16th July 2018 supported by the affidavit of Danchael Mwangure, sought interlocutory injunctions restraining the respondent from effecting the termination of 15 union members by redundancy pursuant to a notice dated 18th June 2018, pending hearing of the application and the suit. The union argued the redundancy was flawed in substance and procedure: the notice was not copied to the Labour Officer contrary to section 40(1)(a) of the Employment Act, 2007 and failed to disclose names and positions of affected employees as required by section 40(1)(a) read with clause 6(b) of the Collective Bargaining Agreement; there was no valid reason since the same functions would be outsourced; and the exercise targeted unionisable members for replacement by outsourced labour, undermining the union's right to organise. The respondent, through the replying affidavit of Hannah Karuru, averred compliance with section 40 and the CBA, including notification of the union and the Ministry of Labour, and that the entire engineering workshop and dispatch loading staff were redundant with no replacement intended. The dispute had been conciliated; the Conciliator found no procedure violated, that the affected positions were superfluous and not core to the business, and recommended the redundancy proceed. The court, adopting those findings, held the applicant's averments unsupported by the facts and found no valid reason to stop the redundancy. The application was dismissed with no orders as to costs.

Key legal issues

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01

Compliance with section 40(1)(a) of the Employment Act and clause 6 of the CBA in the redundancy notice

Holding

The respondent complied: the union and the Ministry of Labour were duly notified, as confirmed by the Conciliator's findings and the supplementary affidavit showing the notice was copied to the County Labour Officer

Reasoning

The applicant alleged the notice was not copied to the Labour Officer and did not disclose names and positions of affected employees as required by section 40(1)(a) and clause 6(b) of the CBA. The respondent filed a supplementary affidavit attaching a copy of the letter to the County Labour Officer. The Conciliator, whose findings the court adopted, found that both the union and the Ministry of Labour were duly notified and that no procedure was violated. The court found the applicant's averments unsupported by the facts and controverted by the Conciliator's findings.

p. 4
02

Existence of a valid reason for the redundancy and the allegation of targeted union members being replaced with outsourced labour

Holding

No valid reason to stop the redundancy: all engineering workshop staff were subject of the redundancy, the positions were superfluous and not core, and the allegations of union-targeting and replacement with outsourced labour were unsupported

Reasoning

The applicant contended the redundancy lacked a valid and legitimate reason and was a scheme to replace union members with outsourced labour. The court held these averments were not supported by the facts: it was uncontested that the entire engineering workshop staff were subject of the redundancy, and the Conciliator found the affected positions superfluous and not core to the business. The respondent's meeting with the applicant was confirmed by the applicant's own affidavit. The court therefore found no valid reason to restrain the redundancy.

p. 4

Legal principles established

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  • An employer may declare employees redundant provided it complies with the requirements of section 40 of the Employment Act and the applicable collective agreement

Court orders

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  1. 1.The application dated 16th July 2018 is dismissed
  2. 2.No orders for costs of the application

Authorities

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Legislation

  • Employment Act, 2007section 40 (including s.40(1)(a) and s.40(1)(c))
  • Employment Act, 2007section 43

Cases cited (5)

  • Javan Were Mbango Versus H. Young Company (E.A) Limited
  • Fredrick Mulwa Mutiso Versus Kenya Commercial Bank Limited
    (2017) eKLR
  • Bernard Misawo Obora Versus Coca Cola Juices Kenya Limited
    (2015) eKLR
  • Kenya Plantation & Allied Workers Union (K) Versus Harvest Limited
  • National Union of Cinema & Places of Amusement Workers Versus Shaw Computer & Management Service Sdn. Bhd
    (Award No: 22 of 1975)
Jurisdiction invoked
Jurisdiction under the Employment and Labour Relations Court as the court with authority over employment and labour disputes and registered collective agreements (statutory basis not expressly cited in the judgment)

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, "Bakery Confectionery Food Manufacturing and Allied Workers Union (K) v Kenafric Industries Limited [2018] KEELRC 425 (KLR)", Case Analysis (2018). Notice of Motion dated 16th July 2018 in the main suit (Cause number not stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/425/eng@2018-12-20

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