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ELRCDismissedNot stated in the judgment as provided· [2024] KEELRC 1511 (KLR)

Kenya Petroleum Oil Workers Union v Kenya Pipeline Company Limited & another (Cause E954 of 2022) [2024] KEELRC 1511 (KLR)

Employment and Labour Relations Court
14 June 2024
1,532 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled that the Salaries and Remuneration Commission's advice binds State corporations, so a union could not register its CBA without SRC approval.

What this practically means

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Executive summary

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The Claimant, a trade union in the petroleum, oil and gas industries, sued the 1st Respondent (its employer, a State petroleum transport and storage corporation) and the 2nd Respondent (the constitutional commission on remuneration) after the 2nd Respondent refused approval of a CBA executed on 16th September 2022. The Claimant sought declarations that the 2nd Respondent lacked mandate to extinguish the right to collectively bargain, that its binding advice contravened Article 41(5) of the Constitution and ILO Convention No. 98, that its circular of 14th October 2019 was of no legal effect, registration of the CBA, and an order that all serving employees benefit from it. After conciliation failed, the parties agreed the claim be determined on documents under Rule 21 of the ELRC (Procedure) Rules, 2016. The 1st Respondent defended itself as having merely complied with the law by seeking advice; the 2nd Respondent confirmed it had advised that the proposed 10% salary review and allowances were unsustainable. The Court, bound by the Court of Appeal's line of authority from Teachers Service Commission v KNUT and subsequent decisions, held that the 2nd Respondent's advice is mandatory and binding and declined all the prayers. Significantly, the Court voiced strong obiter criticism, observing that Article 230 as broadly applied has rendered public service collective bargaining 'as dead as a dodo' and made trade unions moot, and urged that these constitutional questions be settled at the highest judicial level. The claim was dismissed with no order on costs on 14th June 2024.

Key legal issues

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01

Whether the 2nd Respondent's advice on remuneration binds State corporations in collective bargaining

Holding

The advice is mandatory and binding, following the Court of Appeal in Teachers Service Commission v KNUT and subsequent decisions

Reasoning

The Court relied on a catena of recent Court of Appeal decisions restating the TSC v KNUT position. A constitutional provision cannot contain mere unenforceable advice. As the law stands, the 2nd Respondent's advice binds all, effectively making it the decision-maker on public service terms and conditions. The Court, lower in the judicial hierarchy, could not depart from those binding pronouncements.

p. 2
02

The effect of Article 230 of the Constitution on the right to collective bargaining under Article 41(5) and ILO Convention No. 98

Holding

The Court expressed strong obiter concern that the broad application of Article 230 has effectively extinguished free collective bargaining in the public service

Reasoning

While bound to decline the claim, the Court observed that Article 230, broadly applied, has made the 2nd Respondent's advice binding on all, converting its advisory role into a decision-making mandate. Trade unions in the public service have been rendered moot; the bargaining process is directed by a third party. The Court urged that these weighty constitutional questions be settled at the highest judicial level.

p. 3

Legal principles established

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  • The advice of the 2nd Respondent (the constitutional commission on remuneration) is mandatory and binding, not a mere opinion
  • An Employment and Labour Relations Court cannot disregard the binding advice of the 2nd Respondent and register a CBA executed contrary to that advice

Court orders

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  1. 1.The Claim is declined.
  2. 2.No order on the costs.
Jurisdiction invoked
Original jurisdiction under the Employment and Labour Relations Court Act and Article 162(2) of the Constitution; claim determined under Rule 21 of the Employment and Labour Relations Court (Procedure) Rules, 2016 by agreement of the parties

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 Oil Workers Union v Kenya Pipeline Company Limited & another (Cause E954 of 2022) [2024] KEELRC 1511 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1511/eng@2024-06-14

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