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ELRCPartially AllowedCause (ELRC, Nyeri) – reference certificate of 20th August 2020· [2023] KEELRC 1084 (KLR)

Kenya Union of Commercial, Food and Allied Workers v Endarasha Dairy Farmers Co-operative Society Limited (Employment and Labour Relations Cause E014 of 2020) [2023] KEELRC 1084 (KLR)

Employment and Labour Relations Court
27 April 2023
1,673 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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Kenya's ELRC ordered a dairy co-operative to start deducting and remitting union dues for 16 employees, but refused to backdate the payments.

What this practically means

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Executive summary

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The claimant, a registered trade union, sued the respondent, a dairy co-operative society, after recruiting 16 of its unionisable employees (allegedly 100% of its unionisable staff) in March 2019 and forwarding check-off forms for deduction and remittance of union dues pursuant to a Gazette Notice by the Cabinet Secretary for Labour. The respondent refused to deduct, arguing that some recruits were shareholders barred by Section 89 of the Co-operative Societies Act from being its employees, others were seasonal workers whose terms required approval by the Commissioner for Co-operative Development under Rule 27(2) of the Co-operative Societies Rules, and that four had left employment. Only the respondent filed submissions, relying on Kenya Engineering Workers v Esquire Wholesalers [2021] eKLR on the union's burden of proof. The court framed three issues: recruitment, entitlement to dues, and backdating. It found the claimant proved recruitment through signed check-off forms and the respondent's admission that all 16 recruits worked for it; assertions of departed employees or shareholder status were unsupported by documentary evidence, and the milk business is not seasonal. The respondent was ordered to deduct and remit union dues under Gazette Notice No. 11153 of 26th July 2013. However, backdated payment from the respondent's own funds was refused because union dues are deducted from employees' wages, not the employer's money, and no evidence showed prior deductions had been withheld; deductions therefore commence from the judgment date. Judgment was entered for the claimant with a declaration of unlawfulness, a mandatory check-off order, and costs against the respondent. Delivered online at Nyeri on 27th April 2023 by Onesmus N. Makau, J.

Key legal issues

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01

Whether the claimant recruited unionisable employees of the respondent into membership

Holding

The claimant proved recruitment; signed check-off forms were produced and the respondent admitted the recruits worked for it, whether seasonally or otherwise

Reasoning

The claimant produced duly signed check-off forms authorizing deduction of union dues. The respondent admitted in pleadings, witness statements and submissions that the persons listed worked for it, while asserting four left employment and six were shareholders. No documentary evidence substantiated those assertions, and the milk business is not seasonal, going round the year. Recruitment was therefore proved.

p. 4
02

Whether the respondent must deduct and remit union dues

Holding

Yes, under Section 48 of the Labour Relations Act read with Gazette Notice No. 11153 of 26th July 2013

Reasoning

Trade union dues are membership subscriptions payable by members. Section 48 of the Labour Relations Act entitles a union to dues upon an order of the C.S Labour. Such an order published in Gazette Notice No. 11153 required employers to deduct dues from wages of employees acknowledging membership. The respondent acknowledged the 16 recruits worked for it and produced no proof they left.

p. 4
03

Whether deductions should be backdated to 1st April 2019

Holding

No; deductions commence from the date of judgment

Reasoning

Union dues are deducted from employees, not the employer's money. The claimant produced no evidence that the respondent had actually deducted dues from 1st April 2019 to date, so there is nothing held on the employees' behalf to compel remittance of, and no basis to order payment from the employer's own funds. Deductions therefore commence prospectively from the judgment date.

p. 4

Legal principles established

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  • A trade union claiming union dues must prove by evidence that it has recruited into membership the employees on whose account the dues are claimed
  • Section 48 of the Labour Relations Act entitles a trade union to union dues after obtaining an order from the C.S Labour
  • Union dues are deducted from employees' wages, not the employer's own funds, so backdated payments from employer funds are unavailable absent proof of prior deduction

Court orders

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  1. 1.Declaration that the failure by the respondent to comply with the order by the C.S Labour in the Gazette Notice is unlawful
  2. 2.An order compelling the respondent to deduct and remit union dues from the members of the claimant who are employed by it as per the order by the minister in Gazette Notice No. 11153 of 26th July 2013
  3. 3.The respondent to pay costs of the suit
  4. 4.Deduction and payment of union dues to commence from the date of judgment (not backdated)

Authorities

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Legislation

  • Co-operative Societies ActSection 89(1)(2) and (3)
  • Co-operative Societies RulesRule 27(2)
  • Labour Relations ActSection 48
  • ELRC (Procedure) RulesRule 28(3)
  • Gazette Notice No. 11153 of 26th July 2013Order of the C.S Labour on union dues

Cases cited (1)

  • Kenya Engineering Workers v Esquire Wholesalers
    [2021] eKLR
Jurisdiction invoked
Reference to the court by certificate of the Cabinet Secretary for Labour under the Labour Relations Act following unresolved conciliation of a trade dispute

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 and Allied Workers v Endarasha Dairy Farmers Co-operative Society Limited (Employment and Labour Relations Cause E014 of 2020) [2023] KEELRC 1084 (KLR)", Case Analysis (2023). Cause (ELRC, Nyeri) – reference certificate of 20th August 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1084/eng@2023-04-27

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