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ELRCPartially AllowedCause No E512 of 2022· [2024] KEELRC 748 (KLR)

Kenya Petroleum Workers Union v Powerex Lubricants Limited (Cause E512 of 2022) [2024] KEELRC 748 (KLR)

Employment and Labour Relations Court
8 April 2024
2,602 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 ruled that union dues deductions start only when the employer is properly served with the Ministerial Order, and refused union recognition.

What this practically means

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Executive summary

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The Claimant, a registered trade union for the petroleum oil and gas sector, sued the Respondent employer seeking orders to compel it to collect and remit trade union dues from April 2021 and to execute a Recognition Agreement. The Claimant asserted it had recruited nineteen of the Respondent's twenty-five unionizable employees, exceeding the threshold under section 54 of the Labour Relations Act, and that it had served check-off forms and a Ministerial Order under section 48 on the Respondent in March 2021. The Respondent denied service of the Ministerial Order, contended it had forty-two unionizable employees, and argued that the claimed recruits fell short of the simple majority threshold. The court found that the letter of 2nd March 2021 mentioned only check-off forms and not the Ministerial Order; the process server did not testify; and the alleged recipient, David Wachira, denied being the Managing Director or an employee, describing himself as a finance and tax consultant. Service on him therefore could not amount to service on the employer. The court held the Respondent's obligation to deduct dues crystallizes only upon service of the Ministerial Order and deemed the Respondent to have learned of the Order through these proceedings, ordering deductions to commence from the date of the decision rather than April 2021, since retrospective deductions would breach the protection of employees' salaries. On recognition, NSSF and NHIF records showed the workforce exceeded forty-two, so nineteen recruits fell short of the 50% + 1 threshold; recognition was refused. Each party was ordered to bear its own costs.

Key legal issues

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01

Service of the Ministerial Order under section 48 of the Labour Relations Act

Holding

The Claimant did not prove service of the Ministerial Order on the Respondent; the letter of 2nd March 2021 referred only to check-off forms and the alleged recipient, David Wachira, denied being the Managing Director or an employee

Reasoning

The Claimant's letter enclosing documents mentioned only check-off forms, not the Ministerial Order. The process server, John Ochieng Ouma, did not testify and was not cross-examined. David Wachira, the alleged recipient, denied being the Managing Director or present on 8th March 2021, stating he was only a finance and tax consultant. Service on a non-employee consultant cannot satisfy the statutory requirement of service on the employer.

p. 4
02

Recognition under section 54 of the Labour Relations Act

Holding

The Claimant's nineteen recruits fell short of the simple majority of the Respondent's unionizable workforce, which exceeded forty-two at the time of the recognition request

Reasoning

Section 54 requires a simple majority (50% + 1) of the employer's unionizable workforce at the point of the recognition request. NSSF and NHIF remittance records tendered in evidence showed the workforce exceeded forty-two. The employer, having custody of employment information, discharged its burden of proof under section 112 of the Evidence Act, and its evidence was preferred over the Claimant's assumption of twenty-five employees.

p. 5
03

Backdating of trade union dues deductions

Holding

Deductions cannot be backdated to April 2021 because employees' salaries for that period were already paid and an employee's salary is a protected entitlement

Reasoning

Trade union dues are deducted from employees' salaries, not the employer's resources. Since the employees' salaries for April 2021 onwards were already paid out, there is no fund from which retrospective deductions could be made. Deductions from present or future salaries to offset arrears would require the affected employees' express concurrence under Part IV of the Employment Act.

p. 4

Legal principles established

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  • The employer's obligation to deduct and remit trade union dues crystallizes only upon service of a Ministerial Order under section 48 of the Labour Relations Act
  • The 50% + 1 recognition threshold under section 54 is determined against the existing unionizable workforce at the point of the request for recognition
  • The burden of proving the size of its unionizable workforce lies on the employer who has custody of that information, under section 112 of the Evidence Act

Court orders

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  1. 1.A declaration that the Claimant did not serve the Ministerial Order under section 48 of the Labour Relations Act on the Respondent in March 2021 and the Respondent was not obligated to deduct and remit trade union dues from April 2021
  2. 2.That in the absence of proof of earlier service, the Respondent is deemed to have learned of the Ministerial Order through the proceedings
  3. 3.The Respondent to commence making deductions of trade union dues from the Claimant's members and remitting the same to the Claimant from the date of the decision
  4. 4.The court declines to issue an order compelling the Respondent to recognize the Claimant for purposes of collective bargaining
  5. 5.Each party to bear its own costs

Authorities

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Legislation

  • Labour Relations Actsection 48
  • Labour Relations Actsection 54
  • Employment ActPart IV
  • Evidence Actsection 112
  • Constitution of Kenyafreedom of association (referred to generally)
  • ELRC Procedure RulesRule 28(3)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Act (court not expressly stated in judgment)

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 Petroleum Workers Union v Powerex Lubricants Limited (Cause E512 of 2022) [2024] KEELRC 748 (KLR)", Case Analysis (2024). Cause No E512 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/748/eng@2024-04-08

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