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ELRCPartially AllowedELRC Cause No. (not stated in judgment; related to ELRC Cause No. 2326 of 2017)· [2018] KEELRC 2171 (KLR)

Kenya National Private Security Workers Union v G4S Kenya Limited [2018] KEELRC 2171 (KLR)

Employment and Labour Relations Court
13 April 2018
3,124 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court stopped G4S from cutting security guards' wages, ruling that employers must negotiate through a recognised union, not directly with workers.

What this practically means

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Executive summary

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The claimant union, which had a recognition agreement with G4S Kenya Limited and was negotiating a first collective bargaining agreement, moved the court by notice of motion dated 15th January 2018 seeking interim orders restraining the respondent from victimising union members, reducing salaries, and seeking revocation of salary reduction letters issued on 15th January 2018 effective 1st February 2018. The dispute arose from the respondent's decision, after failed redundancy consultations mediated by the Ministry of Labour, to delineate day guards from night guards and pay each the statutory minimum wage, reducing day guards' gross salary from Kshs.16,584 to Kshs.14,866. The respondent had engaged workers directly between 12th and 24th January 2018 and obtained concessions on the new wage model. The court framed three issues: whether the respondent could engage directly with union members, whether the wage-adjustment letters were effective, and whether the claimant was entitled to the prayers sought. The court held that upon recognition, direct engagement with union members without the union's consent on matters under negotiation is an unlawful interference with trade union affairs, contrary to Article 41(2)(c) of the Constitution, Section 48 of the Labour Relations Act and the recognition agreement, and that such dealings are not dependent on the existence of a CBA. The consultations were held not binding and the salary adjustment letters null and void. Finding a prima facie case and balance of convenience favouring workers facing salary reduction, the court issued varied orders: staying the salary reduction letters pending determination of the suit, directing the parties to exhaust the conciliation process at the Ministry of Labour within 30 days, and fixing a mention for parties to report on progress.

Key legal issues

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01

Whether the respondent could engage directly with union members on wage adjustment without the union's consent

Holding

The consultations held with members without the union's consent are not binding and are of no legal effect, contravening Article 41(2)(c) of the Constitution, Section 48 of the Labour Relations Act and the recognition agreement

Reasoning

The court took judicial notice of the model recognition agreement in the Industrial Relations Charter, under which a recognised union is the sole representative of its members on terms and conditions of service including wages. Direct engagement by an employer with members on matters under negotiation amounts to anti-union interference, dividing membership and undermining collective bargaining, a right protected under the Bill of Rights and labour legislation. The respondent's argument that absence of a CBA permitted direct dealing misunderstood Section 48 and 54 of the Labour Relations Act.

p. 5
02

Whether the letters adjusting the wages of day security guards are effective

Holding

The letters adjusting salaries based on the irregular consultations are null and void, and the court stayed their operation pending determination of the suit

Reasoning

Since the consultations underlying the wage adjustments were of no legal effect, the salary adjustment letters founded on them were also of no effect. Whether individual workers actually consented to the 'Proposed New Wage Model' remained a matter for determination after hearing evidence. In the interim, the claimant established a prima facie case and, given the financial strain salary reduction would cause workers, the balance of convenience favoured staying the letters rather than revoking them outright as sought.

p. 5
03

Whether the claimant is entitled to the prayers sought

Holding

Partially - the court granted a variation of the orders sought, staying the salary reduction letters and directing the parties to exhaust the conciliation process within 30 days

Reasoning

The court found a prima facie case and balance of convenience in favour of interim relief but tailored the orders: instead of revoking the letters and issuing the broad restraints sought, it stayed the salary reduction letters pending full hearing and directed the parties to complete the conciliation process at the Ministry of Labour within 30 days, with a mention for parties to report on progress.

p. 5

Legal principles established

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  • Upon recognition of a trade union, an employer's direct engagement with union members on matters under negotiation, without the union's consent, is of no legal effect and contravenes Article 41(2)(c) of the Constitution, Section 48 of the Labour Relations Act and the recognition agreement
  • An employer's obligation under Section 48 of the Labour Relations Act to deal with the union on matters relating to members' rights and interests is not dependent on the existence of a collective bargaining agreement

Court orders

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  1. 1.The letters reducing the salaries issued to the claimant's members on 15th January 2018 are stayed pending the hearing and determination of this suit
  2. 2.The respondent and the claimant are directed to exhaust the conciliation process ongoing at the Ministry of Labour within 30 days
  3. 3.Case fixed for mention for further directions for parties to report on progress of conciliation

Authorities

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Legislation

  • Constitution of KenyaArticle 41(1), 41(2)(a), 41(2)(c)
  • Employment ActSection 26, 41, 46
  • Labour Relations ActSections 4, 5, 48, 54
  • Regulation of Wages and Conditions of Employment (General) Orderminimum wages for day and night guards

Cases cited (1)

  • Kenya National Private Security Workers Union -vs- G4S Kenya Limited
    ELRC Cause No. 2326 of 2017
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under labour legislation (Employment Act, Labour Relations Act) and Article 41 of the Constitution; not expressly cited

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya National Private Security Workers Union v G4S Kenya Limited [2018] KEELRC 2171 (KLR)", Case Analysis (2018). ELRC Cause No. (not stated in judgment; related to ELRC Cause No. 2326 of 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2171/eng@2018-04-13

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