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ELRCDismissedNot stated in the judgment· [2018] KEELRC 1440 (KLR)

Amalgamated Union of Kenya Metal Workers v Kenya Vehicle Manufacturers Limited [2018] KEELRC 1440 (KLR)

Employment and Labour Relations Court
11 July 2018
982 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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Kenya's Employment and Labour Relations Court refused to settle leftover union demands, confirming that judges cannot write CBA terms or reopen decided cases.

What this practically means

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Executive summary

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This Employment and Labour Relations Court ruling at Nyeri, delivered by Nzioki wa Makau J on 11 July 2018, dealt with unresolved issues concerning piece rate employees of the Respondent, in a suit in which Ongaya J had already delivered judgment on 30 October 2015. The parties filed submissions on areas of disagreement and invited the court to rule. The Claimant identified seven issues: house allowance, effective date of the CBA, basic minimum wage, termination gratuity, baggage allowance, permanent position, and piece rate work for genuine piece rate, arguing that piece rate workers lacked a CBA and were a source of cheap labour. The Respondent framed six issues, principally challenging the court's jurisdiction, contending that piece work is a recognised contract type under Section 2 of the Employment Act, that piece rate workers are neither exploited nor discriminated against, and that the court cannot impose terms not provided for in the Employment Act or interfere with management prerogatives. The court held it could not descend into the arena of negotiating employment terms, and following the Court of Appeal decision in TSC v KNUT, that it had no business settling CBA terms. It further held that after the earlier judgment it had become functus officio, and that any fresh dispute should be referred to the Minister for Labour. The application was dismissed and the suit marked as settled, with parties not at liberty to apply.

Key legal issues

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01

Whether the court has jurisdiction to impose CBA terms on piece rate employees

Holding

No - the court has no business settling the terms of a CBA, and having already rendered judgment it is functus officio

Reasoning

Relying on the Court of Appeal decision in TSC v KNUT, a judge of the Industrial Court has no jurisdiction to conduct conciliation or mediation under Section 15 of the Industrial Court Act as read with Article 159(2) of the Constitution. The court further held that after its prior judgment of 30 October 2015 by Ongaya J it became functus officio, so the unresolved issues raised in the motion could not be entertained, and any fresh dispute must be referred to the Minister for Labour.

p. 2

Legal principles established

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  • A judge of the Employment and Labour Relations Court has no jurisdiction to conduct conciliation or mediation or to settle the terms of a CBA
  • Once judgment is rendered the court becomes functus officio and cannot consider further matters in the suit
  • The court cannot descend into the arena of negotiating employment terms; a fresh dispute should go to the Minister for Labour

Court orders

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  1. 1.The application/motion by the Claimant is dismissed
  2. 2.The suit is marked as settled
  3. 3.Parties are not at liberty to apply

Authorities

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Legislation

  • Employment ActSection 31
  • Employment ActSection 2
  • Employment ActSection 18(1)
  • Industrial Court ActSection 15
  • Constitution of KenyaArticle 159(2)

Cases cited (6)

  • Krystalline Salt Limited v Kwekwe Makale & 67 Others
    [2017] eKLR
  • James Heather-Hayes v African Medical and Research Foundation (AMREF)
    [2014] eKLR
  • Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers Union (KUDHEIHA) v Association for the Physically Disabled of Kenya (APDK)
    [2013] eKLR
  • Teachers Service Commission (TSC) v Kenya Union of Teachers (KNUT) & 3 Others
    [2015] eKLR
  • Kenya Plantation & Agricultural Workers Union v Unilever Tea (K) Limited
    [2016] eKLR
  • Alfred Nyungu Kimungui v Bomas of Kenya
    [2013] eKLR
Jurisdiction invoked
Jurisdiction under the Industrial Court Act considered; court held it lacked jurisdiction to impose CBA terms, guided by Article 159(2) of the Constitution as read with Section 15 of the Industrial 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, "Amalgamated Union of Kenya Metal Workers v Kenya Vehicle Manufacturers Limited [2018] KEELRC 1440 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1440/eng@2018-07-11

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