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ELRCDismissedPetition dated 2nd April 2020 (ELRC, Nairobi)· [2021] KEELRC 1376 (KLR)

Kenya Aviation Workers Union v Kenya Airports Authority & another [2021] KEELRC 1376 (KLR)

Employment and Labour Relations Court
2 June 2021
NMNzioki wa Makau
5,367 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed the Salaries and Remuneration Commission can shape pay deals at state corporations, but only if consulted before—not after—negotiations end.

What this practically means

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Executive summary

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The Kenya Aviation Workers Union petitioned the ELRC on behalf of unionisable employees of the Kenya Airports Authority (KAA), challenging the involvement of the Salaries and Remuneration Commission (SRC) in CBA negotiations. The Union had negotiated a fresh CBA for 2016–2019, agreed on 8th August 2019, providing basic pay increments of 7%, 7%, 2% and 2%. KAA refused to execute, having referred the CBA to SRC, which directed renegotiation within set parameters; the Board varied the increments downwards to a uniform 6%. The Union sought declarations that KAA's employees are not state or public officers, that SRC lacks locus over their remuneration, that the post-agreement variation was an unfair labour practice, orders of certiorari quashing SRC's letters of 2019 and the Board's decision, a permanent injunction, and an order for execution and registration of the CBA as agreed. KAA defended its compliance with SRC guidelines and invoked estoppel; SRC asserted its constitutional mandate under Article 230 and reliance on Article 259(1). After written submissions, the court held that KAA is a government-owned enterprise fitting the definition of a state organ, and its workers are paid from the public purse, placing their remuneration within SRC's purview. However, the court criticised the timing of SRC's intervention, holding that SRC advisory must be sought before conclusion of negotiations, not after. The Petition was dismissed with no order as to costs, with a direction that future CBA cycles include SRC input prior to registration.

Key legal issues

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01

Whether Kenya Airports Authority is a state organ and its employees public officers for purposes of Article 230

Holding

KAA, as a government-owned enterprise running national airports, fits within the definition of a state organ and its workers are paid from the public purse, so their remuneration falls within SRC's mandate

Reasoning

The court reasoned that KAA is a government owned enterprise that runs, maintains and operates national airstrips and airports, and its workers are paid out of money collected by the exchequer. On that basis the remuneration of the employees is within the purview of the Salaries and Remuneration Commission notwithstanding the authorities cited by the Petitioner on state corporations.

p. 5
02

Timing of SRC's advisory role in CBA negotiations

Holding

SRC's interposition must be part and parcel of negotiations from the onset, not after conclusion; the parties' conduct of negotiating first and seeking advice later was improper

Reasoning

The court held that while SRC has a role in determining salaries, its advisory should be sought before the conclusion of negotiations. Raising hopes through agreement and then dashing them by post-agreement SRC recommendations was described as despicable, but the remedy was prospective: future CBA cycles must include SRC input prior to registration.

p. 5

Legal principles established

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  • SRC advisory must be sought before conclusion of CBA negotiations, not after the parties have agreed
  • State corporations' employees paid from the exchequer fall within SRC's remuneration mandate

Court orders

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  1. 1.The Petition is dismissed
  2. 2.No order as to costs
Jurisdiction invoked
Article 41 and Article 162(2) of the Constitution (labour and employment relations jurisdiction of the ELRC)

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 Aviation Workers Union v Kenya Airports Authority & another [2021] KEELRC 1376 (KLR)", Case Analysis (2021). Petition dated 2nd April 2020 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1376/eng@2021-06-02

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