Kenya Shoe Leather Workers Union v Fast Track Management Consultants Limited [2020] KEELRC 1203 (KLR)
The bottom line
#Kenya's Employment Court awarded workers a 5% pay rise and leave allowance but kept annual leave at the statutory 21 days, following the Ministry of Labour's economic report.
What this practically means
#Executive summary
#Key legal issues
#Determination of the three disputed CBA clauses (annual leave, leave travelling allowance and wage increment)
The court awarded a 5% general wage increase above statutory minimum wages, maintained annual leave at 21 days and awarded leave travelling allowance of Kshs.2,350, adopting a middle position informed by the CPMU report and the parties' submissions
The court considered the CPMU report which found a 15% rise in cost of living, healthy financial performance by the respondent, and the Bata Shoe Company's compulsory 24-day maintenance closure. It balanced these against the respondent's claims of poor performance on the Bata contract, reduced commission, risk of job losses, and the statutory 21-day leave entitlement under Section 28 of the Employment Act, arriving at awards reflecting the compensable factors without unduly increasing labour costs.
Whether the Claimant union lacked capacity under Section 54 of the Labour Relations Act, 2007
The court did not sustain the respondent's objection on capacity and proceeded to determine the dispute on its merits
The respondent argued that the union had only about 70 members at filing, later dropping to 24 out of 700 employees, failing the simple majority threshold under Section 54. The court made no express finding on this objection, instead noting the undisputed valid Recognition Agreement and CBA, the Minister's acceptance of the trade dispute under Section 62(1), and the failed conciliation, thereby proceeding to determine the disputed CBA issues.
Legal principles established
#- In considering an economic dispute the court is to take into account the economic report prepared by the CPMU Department of the Ministry of Labour and the Wages Guidelines issued by the Minister for Finance
- Major compensable factors in wage review include rise in the cost of living due to inflation and improved labour productivity
Court orders
#- 1.General wage increase of 5% above statutory minimum wages
- 2.Annual leave to be maintained at the current 21 days
- 3.Leave travelling allowance awarded at Kshs.2,350
- Jurisdiction invoked
- Employment and Labour Relations Court Act; trade dispute reported to the Minister under Section 62(1) of the Labour Relations Act, 2007 after failed conciliation
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Shoe Leather Workers Union v Fast Track Management Consultants Limited [2020] KEELRC 1203 (KLR)", Case Analysis (2020). Statement of Claim dated 15th December 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1203/eng@2020-04-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.