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ELRCPartially AllowedCause No 3 of 2022· [2024] KEELRC 1866 (KLR)

Kenya Union of Commercial Food and Allied Workers v Gusii Water & Sanitation Company (Cause 3 of 2022) [2024] KEELRC 1866 (KLR)

Employment and Labour Relations Court
18 July 2024
1,494 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer that refused to negotiate a union CBA, skipped court directions, and offered no evidence of union de-recognition had the union's own proposals imposed as binding terms of service.

What this practically means

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Executive summary

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The Claimant union sued in 2018 seeking an order compelling the Respondent to negotiate a Collective Bargaining Agreement and a declaration of unfair labour practice. On 21st September 2021, Justice Hellen Wasilwa directed the Respondent to engage the Claimant and conclude a CBA within 60 days. Negotiations stalled; a July 2022 application led to a ruling of 13th October 2022 directing the Chief Economist of the Central Planning and Monitoring Unit to file an economic report, which was never filed despite numerous mentions. When a report was eventually filed without the Respondent's input, the Respondent raised a preliminary objection dated 5th April 2024 contending the Claimant lacked locus because its employees had joined the Kenya Union of Water and Sanitation. The court, addressing the objection first, held that a preliminary objection must be a pure point of law per Mukisa Biscuit; union membership is a question of fact requiring evidence, and the Respondent had adduced none and had never applied for de-recognition under Section 54(5) of the Labour Relations Act. The objection was dismissed with costs. On the main suit, the court noted the Respondent's persistent uncooperative conduct, disregarded court directions and refusal to engage the union or the Chief Economist, and allowed the claim. The Claimant's proposals were adopted as terms of service for the Respondent's unionisable employees for 24 months from 1st July 2024, with the Respondent directed to align terms of service within 60 days. In the interest of social partnership, each party was ordered to bear its own costs.

Key legal issues

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01

Whether the preliminary objection on lack of locus standi was sustainable

Holding

Dismissed. The objection required ascertainment of facts (whether employees had joined another union) and the Respondent adduced no evidence; it also never applied for de-recognition under Section 54(5) of the Labour Relations Act.

Reasoning

The court held that union recognition rests on a simple majority of the unionisable workforce, but that requirement is continuous and de-recognition requires a formal application to the National Labour Board or a court order. The Respondent made no such application and produced no evidence that its employees joined the Kenya Union of Water and Sanitation. Since the objection turned on facts to be ascertained, it failed the Mukisa Biscuit threshold and was dismissed with costs.

p. 3
02

Whether the Claimant's CBA proposals should be adopted as terms of service

Holding

Allowed. Given the Respondent's persistent uncooperative conduct and refusal to negotiate or cooperate with the Chief Economist, the court adopted the Claimant's proposals for 24 months from 1st July 2024.

Reasoning

The court traced the history of the matter: a 2021 judgment directing negotiations, non-compliance, an October 2022 ruling directing an economic report by the Chief Economist which was never filed, and repeated disregarding of court directions. Noting the Respondent's uncooperative stance and the unsupported assertion that employees belonged to another union, the court held it had no option but to allow the claim and adopt the Claimant's proposals as the applicable terms of service.

p. 4

Legal principles established

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  • A preliminary objection must raise a pure point of law on the assumption that all facts pleaded are correct; it cannot be raised where facts must be ascertained.
  • Recognition of a union rests on a simple majority of the unionisable workforce, which is a dynamic and continuous requirement; however, de-recognition requires an application to the National Labour Board or an order of the court under Section 54(5) of the Labour Relations Act.
  • Membership of a trade union is a matter of fact requiring production of evidence; an employer alleging employees have moved to another union must lead evidence to that effect.
  • Where a CBA negotiation dispute is unresolved through conciliation, either party may refer it to the court, which may impose terms judiciously based on credible economic reports.

Court orders

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  1. 1.The preliminary objection dated 5th April 2024 is dismissed with costs
  2. 2.The Claimant's proposals marked 'A' attached to the Claim are adopted as the terms of service for the Respondent's Unionisable employees for 24 months from 1st July, 2024
  3. 3.The Respondent is directed to align the terms of service with the adopted proposals within 60 days of the judgment
  4. 4.In the interest of social partnership, parties are ordered to bear their own costs

Authorities

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Legislation

  • Labour Relations ActSection 54(5)

Cases cited (4)

  • Ben Kiplagat Tunduny v Standard Chartered Bank
    [2015] eKLR
  • Kenya Chemical & Allied Workers Union v Polypipes Ltd
    Industrial Court Cause No. 1112 of 2012
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd
    [1969] EA 696
  • Kenya Union of Printing, Paper Manufacturers & Allied Workers v Packaging Industries Ltd
    (2014) eKLR
Jurisdiction invoked
Jurisdiction under the Labour Relations Act to adjudicate unresolved CBA negotiation disputes referred to the Employment and Labour Relations Court, as a follow-up to the judgment of Justice Wasilwa delivered 21st September 2021

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 Gusii Water & Sanitation Company (Cause 3 of 2022) [2024] KEELRC 1866 (KLR)", Case Analysis (2024). Cause No 3 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1866/eng@2024-07-18

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