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ELRCPartially AllowedStatement of Claim dated 4th March 2020· [2023] KEELRC 3344 (KLR)

Kenya Plantation Agricultural Workers Union v Sirgoek Flowers Limited (Cause E004 of 2021) [2023] KEELRC 3344 (KLR)

Employment and Labour Relations Court
21 December 2023
3,155 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded flower farm workers an 8% annual pay rise instead of the 20% claimed, partly because the union delayed filing for six years.

What this practically means

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Executive summary

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The Claimant union, registered under the Labour Relations Act for the commercial and food sector, sued the Respondent flower production company seeking to fix the effective date and duration of the 2016-2018 CBA and to secure a 20% general wage increase for each year. The Respondent entered appearance but never filed a response, so the claim proceeded undefended, with only the Claimant filing submissions. The court framed two issues: the effective date of the CBA and whether the 20% wage increase was merited. On the first issue, the court held that under section 59(5) of the Labour Relations Act parties may agree the effective date, and clause 38 of the last CBA kept it in force until amended. Although logically the successor CBA should have taken effect from 1st April 2016 upon expiry of the last CBA, the court noted the suit was filed some six years after expiry without explanation, and took judicial notice of the Covid-19 pandemic's economic consequences; it therefore ordered the CBA effective from 1st April 2020 to 30th March 2022, with the next CBA to cover the period from 1st April 2022. On wages, the court found no evidential basis for 20%: no Central Planning and Monitoring Unit report, no submissions on inflation rates, and no financial reports demonstrating the Respondent's capacity. It awarded the 8% annual increase the Respondent had offered, on 1st April 2020 and 1st April 2021, subject to employees first being brought up to the statutory minimum wage. No orders for costs were made.

Key legal issues

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01

Effective date and duration of the 2016-2018 CBA

Holding

Although logically the successor CBA should have taken effect from expiry of the last CBA on 1st April 2016, the court ordered an effective date of 1st April 2020 to 30th March 2022, citing the six-year unexplained delay in filing and the effects of Covid-19.

Reasoning

Section 59(5) of the Labour Relations Act allows parties to agree the effective date, and clause 38 of the last CBA continued it in force until amended. The Respondent's own 8% proposal implied a 2016 commencement. However, the Claimant filed suit six years after expiry without explanation, and the court took judicial notice of the Covid-19 pandemic's economic impact, so it fixed a prospective effective date to bring the parties to the present.

p. 6
02

Whether a 20% general wage increase was merited

Holding

Claimed 20% increase rejected for lack of evidential justification; the court awarded the 8% per year the Respondent had offered.

Reasoning

There was no Central Planning and Monitoring Unit report under rule 37(1) of the ELRC Procedure Rules because the Respondent was non-responsive. The Claimant made no submission on inflation rates for the period and produced no financial reports showing the Respondent could afford 20%. In the absence of evidential basis, the court adopted the Respondent's offer of 8% each year.

p. 7
03

Protection of statutory minimum wage

Holding

Any employee below the statutory minimum wage must be raised to it before applying the general increase.

Reasoning

The court included this protective order in its summary of awards to ensure no unionisable employee is disadvantaged by application of the percentage increase to a sub-minimum wage.

p. 7

Legal principles established

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  • A collective agreement becomes enforceable upon registration and is effective from the date agreed upon by the parties
  • In an undefended claim, the court may presume the truth of the claimant's unchallenged pleadings
  • A claimant seeking an enhanced wage increase must justify it with evidence of inflation rates and the employer's financial capacity

Court orders

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  1. 1.Period covered by the CBA is two years from 1st April 2020
  2. 2.General wage increase at the rate of 8% on 1st April 2020 and a further 8% on 1st April 2021
  3. 3.If any employees' wages are below the statutory minimum wage, they shall first be brought up to the statutory minimum wage before being awarded the general wage increase
  4. 4.No orders for costs
Jurisdiction invoked
Jurisdiction of the Employment and Labour Relations Court over labour disputes under the Employment and Labour Relations Court Act and the Labour Relations Act

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 Plantation Agricultural Workers Union v Sirgoek Flowers Limited (Cause E004 of 2021) [2023] KEELRC 3344 (KLR)", Case Analysis (2023). Statement of Claim dated 4th March 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3344/eng@2023-12-21

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