Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 119 of 2016· [2018] KEELRC 896 (KLR)

Union of National Research and Allied Institutes Staff of Kenya (UNRISK) v Bukura Agricultural College (BAC) [2018] KEELRC 896 (KLR)

Employment and Labour Relations Court
11 October 2018
1,250 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court awarded college workers a 7.4% annual raise tied to cost of living, but declined extra housing and commuter allowances already paid.

What this practically means

#

Executive summary

#
This first-instance judgment of the Employment and Labour Relations Court by Mathews N. Nduma, J, delivered on 11th October 2018, resolved a collective bargaining dispute between a claimant union and Bukura Agricultural College, a Government Agricultural College promoted from PC 1 to PC 2 parastatal status. Four unresolved issues remained after conciliation: basic salary increase, house allowance, commuter allowance, and the effective date of the CBA. The union demanded a 100% first-year and 80% second-year salary increase, Kshs. 10,000 monthly house allowance increment, and Kshs. 5,000 commuter allowance. The Respondent relied on procedural requirements (job evaluation, SRC approval, Ministry and Treasury budgetary allocation) and its poor financial position, evidenced by the CPMU report showing significant deficits. The court held that while the Respondent must follow set procedures, it is bound by Article 41(5) of the Constitution to bargain collectively, must comply with minimum wage orders under the Labour Institutions Act, 2007, and must implement government circulars. Invoking CPI variations of 14.74% over the period (approximately 7.4% per year), the court awarded a 7.4% basic wage increase for each of the two years, calculated on the new category II parastatal scales, directed implementation of the new salary scales, fixed the CBA's effective date as July 2016 to June 2018, declined awards on house and commuter allowances as already implemented per SRC circulars, and ordered each party to bear its own costs.

Key legal issues

#
01

Whether the Respondent should effect a basic salary increase for unionisable employees

Holding

Yes, but limited to 7.4% per year for two years, tied to CPI variations and the new parastatal status scales

Reasoning

The court recognised the Respondent's procedural mandate (job evaluation, SRC approval, Treasury allocation) but held it could not derogate from the union's right to bargain under Article 41(5) of the Constitution. The CPMU report showed the Respondent's finances were unhealthy, and the cost of living rose 14.74% over the period, approximating 7.4% per year, which justified that increment calculated on the new status scales.

p. 2
02

Whether house allowance should be increased

Holding

No award; house allowance already implemented per SRC circular effective 1st July 2016

Reasoning

The Respondent averred and demonstrated that house allowance had been fully implemented in accordance with the SRC circular with effect from 1st July 2016. Since the claimant's demand had effectively been met by existing implementation, the court found no basis to make any further award on this head.

p. 3
03

Whether a minimum commuter allowance of Kshs. 5,000 should be awarded

Holding

No award; already granted per SRC circular recommendations and Board resolutions

Reasoning

The Respondent showed that commuter allowance was already granted pursuant to SRC circular recommendations and Board resolutions. In the absence of any demonstrated gap between what was paid and what was sought, the court found no justification to intervene with a further award on this item.

p. 3
04

The effective date of the Collective Bargaining Agreement

Holding

The CBA is to run from July 2016 to June 2018

Reasoning

The CPMU analysis showed the proposed CBA (July 2014 to June 2016) had technically expired on 30th June 2016. Considering the Respondent's ailing financial status and that this was a first CBA heralding a new beginning between the parties, the court concluded the CBA should run for the period 2016/2018, effective July 2016 to June 2018.

p. 3

Legal principles established

#
  • An employer bound by a recognition agreement must engage in collective bargaining in respect of terms and conditions of service for unionisable employees
  • Employees must be compensated for CPI variations to keep them above the poverty line, justifying wage adjustments
  • An employer must comply with minimum terms and conditions of service promulgated by the Cabinet Secretary for Labour under the Labour Institutions Act, 2007, and implement government circulars affecting employees' terms of service

Court orders

#
  1. 1.Basic wage for unionisable employees increased by 7.4% for the 1st year and 7.4% for the 2nd year
  2. 2.Respondent directed to implement the respective salary scales in line with its new status as category II parastatal effective from the date of the CBA if not already implemented in line with circular (OP/SCA C9/21/2) of 20th January, 2011
  3. 3.The 14.74% salary increment for the two-year period to be calculated based on the new status and scales of the Respondent as recognized by the Government
  4. 4.Concluded CBA to run for the period July 2016 to June 2018
  5. 5.Each party to meet its own costs of the suit

Authorities

#

Legislation

  • Constitution of Kenya, 2010Article 41(5)
  • Labour Institutions Act
  • Regulations of Wages (Agricultural Industry) (Amendment) OrderKenya Gazette Supplement No. 91 of 26th June 2015
  • Government Circular (OP/SCAC9/21/2) of 20th January 2011
  • Wage Guidelines of 23rd November 2005
Jurisdiction invoked
Collective bargaining dispute referred following conciliation under the Labour Relations Act framework; Article 41(5) of the Constitution invoked

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Union of National Research and Allied Institutes Staff of Kenya (UNRISK) v Bukura Agricultural College (BAC) [2018] KEELRC 896 (KLR)", Case Analysis (2018). Cause No 119 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/896/eng@2018-10-11

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