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ELRCOtherNot stated in the judgment· [2019] KEELRC 1927 (KLR)

Union of National Research Institute Staff of Kenya [UNIRISK] v Kenya Marine and Fisheries Research Institute [KMFRI] [2019] KEELRC 1927 (KLR)

Employment and Labour Relations Court of Kenya
22 March 2019
1,353 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 ruled that the Salaries and Remuneration Commission's silence cannot block collective bargaining, giving a state corporation 90 days to get SRC advice or the court will decide.

What this practically means

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Executive summary

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The Claimant Union and the Respondent, a state corporation classified PC 4B, had an active CBA signed on 17th July 2013. They negotiated the succeeding CBA and agreed on all issues except five: general wage increase, basic salaries, leave allowance, commuter allowance and effective date. The Respondent's position was that as a state corporation it lacked the mandate to negotiate without the approval or guidance of the Salaries and Remuneration Commission (SRC), to which it had sought advice in 2016 without receiving any response. The Central Planning and Monitoring Unit (CPMU) reported on the disputed items, confirming the Respondent had sought SRC advice in March 2016 and none had been given. The Court held that while the Respondent's employees fall within the SRC's advisory mandate under Article 230 of the Constitution, that mandate must not be exercised so as to stifle the parties' right to collective bargaining under Article 41(5). The SRC's three-year failure to advise was an abuse of mandate amounting to gross violation of that right. The Court asserted its own mandate, under the Constitution and the Employment and Labour Relations Court Act, to impose a solution on deadlocked collective bargaining rather than leave the process dangling indefinitely. It ordered the Respondent to seek the SRC's advice in writing within 90 days, directed that the judgment, CPMU Report and submissions be forwarded to the SRC, and retained the file for a final determination of the contested items at the expiry of the 90 days, with or without SRC input. No costs order was made.

Key legal issues

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01

Scope of the SRC's advisory mandate over state corporation employees

Holding

Employees of state corporations fall within the advisory mandate of the SRC

Reasoning

The Court accepted decisions cited by the Respondent establishing that the SRC's mandate extends to parastatal employees. The Respondent, classified PC 4B by the CPMU, could not negotiate without SRC approval or guidance. Its employees, represented by the Claimant Union, thus fall within the SRC's advisory mandate under Article 230 of the Constitution.

p. 2
02

Effect of SRC inaction on the collective bargaining process

Holding

SRC's failure to give advice within a reasonable time is an abuse of mandate that grossly violates the right to collective bargaining, and cannot defeat the process

Reasoning

The Respondent sought SRC advice in 2016; three years later none had been given. The CBA cycle was outliving the 4-year cycle set by the SRC itself. The Court held that other actors (Labour Office, CPMU, Court) had discharged their mandates, and the Constitution, the Labour Relations Act and ILO Convention No. 98 could not be intended to allow one actor's inaction to frustrate collective bargaining.

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03

Role of the Court in deadlocked collective bargaining

Holding

The Court may impose a solution on deadlocked collective bargaining processes without abrogating the parties' right to freely negotiate and agree

Reasoning

Section 26(2) of the Employment Act 2007 defines terms and conditions of employment as arising from CBAs, individual contracts, written laws or court judgments. Parties may submit unresolved disputes to the ELRC. The Court's role is to impose a solution on deadlocked processes so that collective bargaining is not left indefinitely unresolved and parties can cross over to the next bargaining cycle.

p. 2

Legal principles established

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  • The advisory mandate of the SRC must not be exercised in a manner that stifles, stunts or denies the constitutional right to collective bargaining
  • The SRC's failure to advise a party to collective bargaining constitutes abuse of its mandate and violates the right to collective bargaining
  • The absence of SRC advice does not shut down collective bargaining or deprive the Court of its mandate to resolve deadlocked disputes

Court orders

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  1. 1.The Respondent is granted 90 days from the date of the Judgment to seek the advice of the SRC in writing
  2. 2.A copy of the Judgment, the CPMU Report and the Closing Submissions of both Parties shall be forwarded to the SRC by the Respondent
  3. 3.The Court shall review the dispute at the end of the 90 days and give a final determination of the contested items, with or without the input of the SRC

Authorities

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Legislation

  • Constitution of KenyaArticle 230
  • Constitution of KenyaArticle 41(5)
  • Labour Relations Act2007
  • Employment ActSection 26(2)
  • Employment and Labour Relations Court ActNot specified
  • ILO Convention No. 98 on Right to Organize and Collective BargainingNot specified

Cases cited (2)

  • Banking Insurance & Finance Union v. Kenya Post Office Savings Bank Limited
    [2017] e-KLR
  • National Union of Water Sewerage Employees v. Mathira Water & Sanitation Company Limited & 2 Ors
    [2013] e-KLR
Jurisdiction invoked
Constitution of Kenya and the Employment and Labour Relations Court Act, read with Article 41(5) on collective bargaining

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, "Union of National Research Institute Staff of Kenya [UNIRISK] v Kenya Marine and Fisheries Research Institute [KMFRI] [2019] KEELRC 1927 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1927/eng@2019-03-25

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