Tailors and Textiles Workers Union v Mills Industries Limited [2018] KEELRC 1531 (KLR)
The bottom line
#A Kenyan court ruled workers still benefit from a collective bargaining agreement even after its period expires, awarding a 10% wage increase.
What this practically means
#Executive summary
#Key legal issues
#Whether expiry of the CBA period renders the reference moot
The claim was not moot; workers employed during the CBA period are entitled to the benefits of the negotiated CBA.
The respondent argued the claim had been overtaken by events and there would be no value in hearing it. The court rejected this, holding that the delay was attributable in part to the respondent dragging its feet in the negotiations before the Minister, and that workers who were in employment during the CBA period must benefit from the negotiated and concluded CBA notwithstanding that the period had passed.
Quantum of general wage increment
A 10% increment over the minimum wage was awarded, based on the CPMU report's finding on the rise in cost of living indices.
The court accepted the CPMU report as a technical report removed from the subjective views of the disputants. It found the CPI rise was 10% and that members were entitled to compensation for loss of purchasing power. Although the respondent claimed economic hardship and reliance on the Labour Day 14% increase, it never made an offer on wage increment, and paying only the government minimum wage would be the lazy approach absent good cause.
Disputed CBA clauses other than wage increment
The remaining disputed clauses were not awarded directly but remitted to negotiation in the subsequent CBA.
Five issues were disputed: general wage increment, basic wage for new entrants, house allowance, safari allowance and gratuity. The court awarded only the 10% increment and directed that the other disputed aspects be incorporated and negotiated afresh in the subsequent CBA if not already done, effectively declining to make findings on each of the remaining clauses.
Legal principles established
#- Workers in employment during the period covered by a CBA remain entitled to benefit from the CBA negotiated and concluded even after the CBA period has passed.
- The statutory minimum wage is a floor, and paying only the minimum wage is not the proper approach absent good cause.
- Workers are entitled to compensation for loss of purchasing power measured against the rise in cost of living indices.
Court orders
#- 1.A 10% increment over the minimum wage for the period of the CBA awarded to the claimant's members
- 2.The other disputed aspects of the CBA to be incorporated and negotiated afresh in the subsequent CBA if not already done
- Jurisdiction invoked
- Reference on a disputed negotiated CBA under the Labour Relations Act (dispute referred following mediation by the Minister); specific provision not stated in the judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Tailors and Textiles Workers Union v Mills Industries Limited [2018] KEELRC 1531 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1531/eng@2018-07-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.