Kenya Union of Commercial and Food Allied Workers v Transmattresses Limited (Cause E009 of 2023) [2024] KEELRC 219 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the CBA dispute was properly before the court
Yes - the conciliator's report recommending suspension of negotiations constituted a failure to reach agreement, bringing the dispute within sections 69 and 73 of the Labour Relations Act
The union gave notice under the CBA's amendment clause, reported the dispute to the Ministry of Labour under section 62, and a conciliator was appointed. Conciliation failed as the Respondent did not attend meetings or substantiate claims of poor business performance. The conciliator's report recommending suspension for one year was treated as a failure to reach agreement, vesting jurisdiction in the court.
What wage increases and CBA terms were reasonable
Minimum wages set at least Kshs. 200 above statutory minimums; 5% general wage increase per year; most clauses retained; commuter allowance and bonus declined; agency fees adopted under section 49 of the Labour Relations Act
The court relied on the CPMU economic report showing the Respondent remained profitable, the CPI rise of 6.04% over two years, statutory minimum wages under Legal Notice No. 125 of 2022, and the out-going CBA's increases. The Covid-19 period 2019-2020 was suspended per the conciliator and the Tripartite MOU, with the new CBA effective 1.5.2020 for two years.
Legal principles established
#- An employer cannot pay wages below the statutory minimum rates of pay prescribed by the Cabinet Secretary for Labour
- Wage awards should be guided by national wage guidelines, productivity and the employer's economic capacity as analysed by the CPMU under section 15(5) of the Employment and Labour Relations Court Act
Court orders
#- 1.Retention of agreed clauses (Preamble, Clauses 4, 5, 6, 8, 10, 13, 18, 19, 20, 21, 22 and 25) as per the outgoing CBA
- 2.Award of new basic minimum wage entry points per category, being at least Kshs. 200 above the statutory minimum wages in Legal Notice No. 125 of 1st July 2022 (approximately 5% above statutory minimum rates)
- 3.General wage increase of 5% for the first year of the CBA and a further 5% for the second year, employees first to be brought to the CBA minimum rates if below
- 4.House allowance retained at 15% of basic salary
- 5.Annual leave clause retained; leave travelling allowance increased to Kshs. 2,000 per year
- 6.Compassionate leave, sick leave, safari allowance, medical treatment, uniforms/protective clothing, retirement, redundancy and certificate of service clauses retained as per outgoing CBA
- 7.Employer's coffin contribution increased to Kshs. 20,000; rest of funeral expenses clause retained
- 8.Disturbance allowance on transfers increased to Kshs. 15,000
- 9.New CBA to come into force on 1.5.2020 for 2 years, with the period 1.5.2019 to 1.5.2020 suspended as proposed by the conciliator in view of Covid-19 hardships and the Tripartite Memorandum of Understanding
- 10.Proposed new clauses on commuter allowance and annual bonus declined; proposal on agency fees allowed and adopted as provided in section 49 of the Labour Relations Act
- Jurisdiction invoked
- Sections 69 and 73 of the Labour Relations Act (dispute referred following failure of conciliation under section 62)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Commercial and Food Allied Workers v Transmattresses Limited (Cause E009 of 2023) [2024] KEELRC 219 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/219/eng@2024-02-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.