Banking Insurance & Finance Union (Kenya) v Standard Chartered Bank Kenya Limited [2020] KEELRC 859 (KLR)
The bottom line
#Kenya's Employment and Labour Relations Court ruled that supervisory bank staff in Bands 8 and 9 are not unionisable, and dismissed the union's case entirely.
What this practically means
#Executive summary
#Key legal issues
#Whether Band 8 and 9 employees (Teller Service Manager, Branch Sales and Service Executive, Chief Teller, Senior Teller) are unionisable
They are not unionisable; their job descriptions show supervisory and management functions that bring them within the supervisory exclusion in Appendix C and section 2 of the Memorandum of Agreement.
The court examined the Job Description Forms produced in the affidavit of Lorraine Adoli Oyombe and found that Band 8 staff manage other employees and make management decisions. Applying the Appendix C definition of 'supervisory' - officers who supervise the work of others, are responsible for a section of the Bank, and make effective recommendations on hiring, firing, promotion or discipline - the court concluded that holders of Band 8 and 9 positions are excluded from union membership under section 2 of the Memorandum of Agreement.
Whether the dispute can be determined against the respondent bank alone
No. The level of union representation is governed by the recognition agreement between the Union and the Kenya Bankers Association; issues of compliance should be raised at association level.
The recognition agreement is signed between the Union and the Association on behalf of member banks. Section 59(1) of the Labour Relations Act recognises negotiation at association level and binds members of an employers' organisation party to a collective agreement. A decision on the level of union representation made at association level binds all members, so the claimant could not prosecute the grievance against one member bank alone, especially where matters touch on the recognition agreement.
Whether the respondent underpaid the promoted employees
The prayer fails for want of proof; the claimant adduced no evidence of underpayment.
The claimant sought computation and payment of underpayments and enhancement of salaries to CBA scales, alleging the promotions lacked monetary gain. However, it did not tender any documentary or oral evidence establishing the alleged underpayment. The court held that the claim could not succeed on assertions alone and the prayer failed for want of proof.
Legal principles established
#- The level of union representation is a matter provided for in the recognition agreement signed between the Union and the employers' association, and non-compliance by a member should be dealt with at association level so that any decision binds all members.
- Staff whose duties involve supervising others and making management decisions fall within the supervisory exclusion in the Recognition Agreement and are not eligible for union membership.
Court orders
#- 1.The suit is dismissed
- 2.No orders as to costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Labour Relations Act (dispute referred after failed conciliation)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Banking Insurance & Finance Union (Kenya) v Standard Chartered Bank Kenya Limited [2020] KEELRC 859 (KLR)", Case Analysis (2020). Memorandum of Claim filed 1st December 2014 (Employment and Labour Relations Court Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/859/eng@2020-06-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.