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ELRCDismissedCause No 352 of 2019· [2021] KEELRC 1335 (KLR)

Kenya Union of Commercial, Food & allied Workers Union (Kucfaw) v Agriculture & Food Authority (Coffee Directorate) Limited & another [2021] KEELRC 1335 (KLR)

Employment and Labour Relations Court
16 June 2021
4,985 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a union's bid to force a CBA, holding that when an employer entity is dissolved, the old bargaining relationship lapses too.

What this practically means

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Executive summary

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The Kenya Union of Commercial Food and Allied Workers (KUCFAW) sued the Agriculture & Food Authority (AFA) and the Salaries and Remuneration Commission (SRC), complaining that AFA refused to review and conclude a Collective Bargaining Agreement for the period 1st July 2015 to 30th June 2019. The Union traced its relationship to the defunct Coffee Board of Kenya, with which it had recorded a consent in Cause No. 1130 of 2015, and alleged that SRC circulars and National Treasury interference frustrated negotiations. After conciliation before Mr. Mokaa, a certificate of unresolved dispute issued, the Conciliator having found that on operationalisation of AFFA under the Crops Act the Coffee Board of Kenya ceased to exist and its relationship with the Union lapsed. AFA resisted the claim on the grounds that no valid recognition agreement existed, that the recognition dispute was pending before the National Labour Board, and that SRC advice on public officers' remuneration is mandatory and binding. SRC maintained it was exercising its constitutional mandate under Article 230 and had merely sought outstanding information before advising. The Court found the claim devoid of merit: the lapse of the Coffee Board of Kenya left the parties as strangers with no valid agreement on which to peg a CBA, and the dispute could only crystallise upon fresh recruitment or recognition. No evidence supported the allegation against SRC. The suit was dismissed with no order as to costs, each party bearing its own costs, the parties being social partners and the claim of limited scope.

Key legal issues

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01

Whether a duty to conclude a CBA survived the dissolution of the Coffee Board of Kenya

Holding

No - the transitional framework lapsed and no valid recognition agreement exists between the Claimant and the 1st Respondent

Reasoning

The Conciliator found that on operationalisation of AFFA under the Crops Act, the former Coffee Board of Kenya is no longer a legal entity and the relationship with KUCFAW lapsed. The Court found that on the lapse of the CBA, the parties are strangers, and a dispute can only crystallise upon fresh recruitment of membership or recognition of the Union. The claim therefore lacked a foundation in a valid recognition agreement.

p. 1
02

Whether the 2nd Respondent frustrated CBA negotiations

Holding

No - the allegation was grave but unsupported by any evidence

Reasoning

The Claimant accused the SRC of frustrating negotiations through circulars, but adduced no evidence of bias or maladministration. The Court accepted that the SRC was exercising its constitutional mandate under Article 230 and that advisory proposals, however unwelcome, do not constitute a stumbling block. The 2nd Respondent had merely requested information that the 1st Respondent had not supplied.

p. 5
03

Costs of the suit

Holding

Each party to bear their own costs, reflecting their status as social partners and the limited scope of the claim

Reasoning

Although the claim was dismissed, the Court noted the parties are social partners and the claim was of limited scope; therefore it departed from the ordinary rule that costs follow the event and ordered each party to bear its own costs.

p. 5

Legal principles established

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  • Upon operationalisation of AFFA under the Crops Act, the former Coffee Board of Kenya ceased to be a legal entity and its relationship with the union lapsed, so no CBA can be negotiated absent a fresh recognition or recruitment of membership
  • Any dispute over recognition must crystallise before a CBA dispute can be entertained by the Court

Court orders

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  1. 1.Suit dismissed
  2. 2.No order as to costs - each party to bear their own costs

Authorities

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Legislation

  • Constitution of KenyaArticles 41(5), 230(4), 259(11), 260
  • Labour Relations ActSections 2, 54(1), 54(5), 54(6), 54(7), 57(1), Part VIII
  • Crops ActNo. 16 of 2013
  • Agriculture, Fisheries and Food Authority ActFirst Schedule, Section 7
  • Salaries and Remuneration Commission ActSection 11
  • State Corporations ActNot specified
  • Public Officers Ethics ActSection 2
  • Evidence ActSections 107, 108, 109
  • Labour Institutions ActSection 5

Cases cited (11)

  • Teachers Service Commission v Kenya National Union of Teachers (KNUT) & Others
    [2015] eKLR
  • Kenya National Union of Nurses v Moi Teaching and Referral Hospital & 2 Others
    [2015] eKLR
  • Banking Insurance & Finance Union (Kenya) v Kenya Post Office Savings Bank Ltd
    [2017] eKLR
  • National Union of Water Sewerage Employees v Mathira Water and Sanitation Company Limited & 2 Others
    [2013] eKLR
  • Civicon Limited v Amalgamated Union of Kenya Metal Workers
    [2016] eKLR
  • Kenya Union of Entertainment and Music Industry Employees v Bomas of Kenya Limited
    [2018] eKLR
  • Speaker of National Assembly - vs- James Njenga Karume
    [1992] eKLR
  • Olivado (Epz) Limited v Isaiah Bundi Kirigwa, Chairperson National Labour Board & Another
    [2019] eKLR
  • Banking, Insurance & Finance Union (Kenya) v Taifa Sacco Society Ltd
    [2014] eKLR
  • Kalya Soi Farmers' Co-operative Society v Paul Kirui & Another
    [2013] eKLR
  • Geoffrey Muthiga Kabiru & 2 others v Samuel Munga Henry & 1756 others
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Labour Relations Act, 2007, over an unresolved trade dispute reported under Part VIII

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 Union (Kucfaw) v Agriculture & Food Authority (Coffee Directorate) Limited & another [2021] KEELRC 1335 (KLR)", Case Analysis (2021). Cause No 352 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1335/eng@2021-06-16

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