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ELRCPartially AllowedCause stated as instituted on 16 January 2020 (ELRC, Nairobi)· [2020] KEELRC 1168 (KLR)

Kenya Long Distance Truck Drivers and Allied Workers Union v Masters Fabricators Limited [2020] KEELRC 1168 (KLR)

Employment and Labour Relations Court
8 May 2020
1,525 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan employer must deduct and remit union dues from employees who signed Form S, even without a recognition agreement.

What this practically means

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Executive summary

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The Union sued Master Fabricators Ltd on 16 January 2020, complaining that the Respondent had refused since December 2019 to deduct and remit union dues, and had failed to conclude negotiations for a collective bargaining agreement for 2019 to 2021, in breach of members' rights of association. The application sought orders compelling compliance with sections 48 and 50 of the Labour Relations Act and, alternatively, payment of dues from the Respondent's own funds. The Respondent raised a preliminary point of law founded on sections 54(2) and 54(8) of the Labour Relations Act, contending there was no recognition agreement with the Union. The Court declined to determine the recognition dispute at the interlocutory stage, holding that the statutory threshold under section 54(2) requires production and testing of evidence. It noted that a Conciliator had in 2008 directed the Respondent to grant recognition after the Union recruited over 90% of the unionisable workforce. On the check-off dispute, the Court held that a recognition agreement is not a condition precedent to deductions under section 48; the statutory requirements are a Ministerial/Cabinet Secretary order, particulars of employee members (Form S check-off forms) and a designated bank account, all of which were satisfied. The Respondent had previously deducted and remitted dues under collective agreements with the Nairobi Bus and Coach Body Builders Group of the Federation of Kenya Employers until the agreement lapsed in 2019. The Court found a prima facie case and ordered the Respondent to comply with sections 48 and 50 effective May 2020 for employees who signed Form S, with default attracting payment from its own funds backdated to November 2019. Costs were reserved in the Cause.

Key legal issues

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01

Preliminary objection premised on lack of a recognition agreement (section 54(2) & (8) Labour Relations Act)

Holding

Rejected as premature and legally misplaced at the interlocutory stage

Reasoning

The Court held that determining whether the Union met the statutory recognition threshold would require production and testing of evidence unsuitable at interlocutory stage. It noted material on record that a Conciliator appointed by the Minister for Labour had in 2008 directed the Respondent to grant recognition as the Union had recruited over 90% of the unionisable workforce. The Court distinguished recognition, which governs negotiation of terms and conditions, from the check-off obligation under sections 48 and 50.

p. 2
02

Whether the Union satisfied section 48 of the Labour Relations Act for deduction and remittance of union dues

Holding

Yes - a prima facie case was demonstrated

Reasoning

The Court identified the statutory test: a Ministerial order, particulars of employees who are union members (Form S/check-off forms), and a designated bank account. The Union filed Form S addressed to the Respondent, referenced a Cabinet Secretary's order of 1 October 2007, and identified the designated account. Significantly, the Respondent had previously deducted and remitted dues on the strength of a collective agreement listing it as a member of the employer group, until the agreement lapsed in 2019.

p. 3
03

Employee rights in authorising deductions

Holding

Signing Form S is an exercise of the right of association and choice under section 19 of the Employment Act

Reasoning

The Court relied on section 19 of the Employment Act, under which an employee may dispose of wages as they deem fit. By signing Form S, the employee exercises the right of association and choice, reinforcing that the Respondent was obliged to honour the authorised deductions notwithstanding the absence of a recognition agreement.

p. 3

Legal principles established

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  • A recognition agreement is not a condition precedent to an order for deduction and remittance of union dues under section 48 of the Labour Relations Act; the statutory test focuses on the Ministerial order, employee particulars, and a designated bank account.
  • Whether a union has met the statutory threshold for recognition under section 54(2) cannot be determined at the interlocutory stage without testing evidence.
  • By signing Form S, an employee exercises the constitutional right of association and freedom to dispose of wages under section 19 of the Employment Act.

Court orders

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  1. 1.The Respondent to comply with the mandatory provisions of sections 48 and 50 of the Labour Relations Act effective May 2020 in respect of the employees in its payroll who have signed the Form S
  2. 2.In default, the Respondent will pay from its own funds such deductions not made and remitted backdated to November 2019
  3. 3.Costs in the Cause

Authorities

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Legislation

  • Labour Relations Act, 2007section 54(2)
  • Labour Relations Act, 2007section 54(8)
  • Labour Relations Act, 2007section 48
  • Labour Relations Act, 2007section 50
  • Labour Relations Act, 2007section 62
  • Employment Act, 2007section 19
Jurisdiction invoked
Jurisdiction under the Labour Relations Act, 2007 and Employment Act, 2007 over trade union dues and recognition disputes

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 Long Distance Truck Drivers and Allied Workers Union v Masters Fabricators Limited [2020] KEELRC 1168 (KLR)", Case Analysis (2020). Cause stated as instituted on 16 January 2020 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1168/eng@2020-05-08

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