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ELRCDismissedNot stated in judgment (Cause at Employment and Labour Relations Court, Nakuru; judgment appealed from delivered 29th July 2019)· [2019] KEELRC 24 (KLR)

Plantation & Agricultural Workers Union v Export Floriculture, Horticulture & Allied Workers Union & another [2019] KEELRC 24 (KLR)

Employment and Labour Relations Court
17 December 2019
1,716 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This ruling by the Employment and Labour Relations Court at Nakuru (M. Mbaru, J, delivered 17th December 2019) determined an application dated 15th August 2019 by Export Floriculture Horticulture & Allied Workers Union seeking a stay of execution of orders 'b', 'c' and 'd' in the court's judgment of 29th July 2019, together with the findings underlying them, pending an intended appeal. The union argued that the judgment prejudiced its members' rights under Article 41 of the Constitution and the collective bargaining framework, and that the court could not compel employers who had not consented to implement collective agreements negotiated with the claimant union. The claimant and the 2nd respondent opposed, relying on the claimant's recognition under section 54 of the Labour Relations Act, its simple majority membership, and the effect of sections 57 and 58 of the LRA. Applying the Order 42 Rule 6 stay principles (via Amal Hauliers and G.N. Muema), the court held there was no direct substantial loss, since the 1st respondent's members would continue to enjoy the favourable terms applicable to claimant members protected by section 26(2) of the Employment Act; and that, the decree having no monetary value, the security condition did not apply. The court declined to engage with the merits, reserving the questions of law to the Court of Appeal, distinguished the David Benedict Omulama authority, and dismissed the application with each party bearing own costs.

Key legal issues

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01

Substantial loss for purposes of stay of execution

Holding

The alleged substantial loss was not direct; the 1st respondent's members would simply continue to enjoy the terms and conditions applicable to claimant members, so no prejudice warranting stay was shown

Reasoning

The court examined the effect of its judgment and found that the decree carried no quantified monetary value. The 1st respondent's members would remain entitled to the favourable terms already applicable to claimant members, protected by section 26(2) of the Employment Act, 2007. Loss of the prospect of negotiating separate CBAs with employers already bound by a recognition agreement did not amount to the substantial loss required by the stay principles.

p. 2
02

Requirement of security

Holding

Security is inapplicable because the decree has no monetary value

Reasoning

Applying the Order 42 Rule 6 framework as persuasive authority, the court noted security is tied to due performance of a decree. Since the judgment mandated implementation of recognition and CBA arrangements rather than payment of any sum, there was nothing capable of being secured by a deposit, and that condition fell away.

p. 2
03

Scope of intervention on a stay application

Holding

The court should not go into the merits of the intended appeal; questions of law raised in the draft memorandum are for the Court of Appeal

Reasoning

The court held that the 1st respondent's complaints about the construction of sections 54(1), (2) and (3) of the Labour Relations Act were matters for the appellate court. The court confined itself to whether the stay conditions were met, observing that the facts of the authorities relied on by the 1st respondent differed from those of the present case.

p. 3
04

Distinguishability of authorities relied on

Holding

The David Benedict Omulama authority was distinguishable on the facts

Reasoning

The court held the 1st respondent was missing that the facts of each case have different foundations. The facts in the referenced matters were different from the facts here, so the precedent did not assist the application for stay.

p. 3

Legal principles established

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  • Stay of execution pending appeal requires demonstration of substantial loss, application without unreasonable delay, and security where applicable; where the decree has no monetary value the security requirement does not apply
  • An employee already enjoying more favourable terms under a collective agreement or court order cannot be made to suffer prejudice; the more favourable terms prevail under section 26(2) of the Employment Act

Court orders

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  1. 1.The 1st respondent's application dated 15th August 2019 is not allowed (dismissed)
  2. 2.Each party shall bear own costs
Jurisdiction invoked
Section 17 of the Employment and Labour Relations Court Act, 2011 (right of appeal); stay pending appeal invoking discretionary powers (Order 42 Rule 6 principles applied as persuasive authority)

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, "Plantation & Agricultural Workers Union v Export Floriculture, Horticulture & Allied Workers Union & another [2019] KEELRC 24 (KLR)", Case Analysis (2019). Not stated in judgment (Cause at Employment and Labour Relations Court, Nakuru; judgment appealed from delivered 29th July 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/24/eng@2019-12-17

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