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ELRCPartially AllowedMemorandum of Claim dated 16th January 2013· [2019] KEELRC 2548 (KLR)

Kenya Union of Commercial Food & Allied Workers v Seb Estates Limited [2019] KEELRC 2548 (KLR)

Employment and Labour Relations Court (Industrial Court)
29 January 2019
1,594 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Once an employer signs a union recognition agreement in Kenya, it must negotiate a collective bargaining agreement, even if union membership later shrinks.

What this practically means

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Executive summary

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The Claimant union filed a Memorandum of Claim on 18th January 2013 alleging that the Respondent's refusal to negotiate a Collective Bargaining Agreement amounted to an unfair labour practice, and sought an order compelling the Respondent to negotiate in good faith and conclude the CBA within 30 days, plus costs. The parties had executed a recognition agreement on 25th August 2011; the Claimant reported a trade dispute to the Minister, a conciliator was appointed, but the Respondent repeatedly sought adjournments, failed to attend a meeting scheduled for 16th October, and never submitted counter proposals. The Respondent argued that the union lacked locus standi because it represented only 18 of 232 unionisable employees, below the simple majority threshold in section 54 of the Labour Relations Act, and that the recognition agreement's enforceability was conditional on recruiting a simple majority. The court held that simple majority is relevant only at the recognition stage, not to negotiation of a CBA; the recognition agreement remained valid as the Respondent had not moved to terminate it; and the recognition agreement conferred locus on the union to negotiate. The court declined to adopt the CPMU Report since negotiations had not commenced and no items were in dispute. Allegations of violation of the recognition agreement raised only in submissions were rejected as unpleaded. The court ordered the Respondent to send counter proposals and commence CBA negotiations within 30 days, with mention after 60 days to report progress.

Key legal issues

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01

Validity of the recognition agreement and obligation to negotiate a CBA

Holding

The recognition agreement executed on 25th August 2011 was valid; the respondent was under an obligation under sections 54(1) and 57(1) of the Labour Relations Act to negotiate a CBA with the union

Reasoning

Both parties admitted signing a recognition agreement on 25th August 2011. Under section 54(1), once a recognition agreement is signed it paves way for negotiation of a CBA. The simple majority question is only relevant before recognition, and the respondent had not given notice to terminate the recognition agreement. The alleged understanding making enforceability conditional on recruitment of a simple majority was unsupported by evidence or law.

p. 3
02

Simple majority as precondition to negotiation

Holding

The respondent's argument that the claimant lacked a simple majority was misplaced; simple majority is relevant only at the recognition stage

Reasoning

Section 54(1) requires simple majority for recognition. The parties had already executed a recognition agreement, which the respondent had not moved to terminate under section 54(5). The claim that the union had only 18 of 232 unionisable employees was unsupported by any evidence. Consequently, the locus standi objection failed.

p. 3
03

Whether refusal to negotiate amounts to unfair labour practice

Holding

The respondent was ordered to commence negotiations within 30 days; the court found the respondent under an obligation to negotiate but did not make an express declaration of unfair labour practice

Reasoning

The conciliator's meetings showed the respondent sought adjournments and failed to attend a scheduled meeting, and never submitted counter proposals. The dispute was the refusal to negotiate rather than the content of proposals. The court's remedy was a mandatory order to commence negotiations rather than adoption of the CPMU award.

Legal principles established

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  • A simple majority of unionisable employees is a prerequisite to recognition of a union, not to the subsequent negotiation of a collective agreement
  • A valid recognition agreement entitles the union to negotiate a collective bargaining agreement and confers locus to negotiate
  • Issues not pleaded in a memorandum of response cannot be raised for the first time in submissions

Court orders

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  1. 1.The respondent to commence negotiations of the Collective Bargaining Agreement with the union by sending its counter proposals and commencing negotiations within 30 days from the date of judgment
  2. 2.The case to be fixed for mention within 60 days from date of judgment for parties to report on the progress of negotiations of the CBA

Authorities

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Legislation

  • Labour Relations ActSection 54(1)-(8)
  • Labour Relations ActSection 57(1)
  • Labour Relations Act 2008Section 69(a)
  • Employment Act

Cases cited (3)

  • Kenya Union of Commercial Food and Allied Workers vs. G4S Security Services Kenya Limited
  • Aviation & Allied Workers Union vs. Air Kenya Express Limited & Another
    [2013] eKLR
  • Transport Workers Union vs. Trans-trade Ltd (K)
    [2016] eKLR
Jurisdiction invoked
Section 54(7) of the Labour Relations Act, 2007 - referral of an unsettled recognition/collective bargaining dispute to the Industrial Court

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, "Kenya Union of Commercial Food & Allied Workers v Seb Estates Limited [2019] KEELRC 2548 (KLR)", Case Analysis (2019). Memorandum of Claim dated 16th January 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2548/eng@2019-01-29

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