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IndustrialAllowedCause 32 of 2001· [2001] KEIC 8 (KLR)

Kenya Plantation & Agricultural Workers’ Union v Kenya Tea Packers Ltd (Cause 32 of 2001) [2001] KEIC 8 (KLR)

Industrial Court of Kenya
6 November 2001
CCCP Chemuttut
502 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court turned a negotiated 17% wage settlement for tea sector workers into a binding award, showing settlements can carry court force.

What this practically means

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Executive summary

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This was a wage dispute referred to the Industrial Court at Nairobi by the Kenya Plantation & Agricultural Workers' Union against Kenya Tea Packers Ltd, via a Notification of Dispute dated 13th March 2001 accompanied by a statutory certificate from the Labour Commissioner under section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234. The Union filed its memorandum in May 2001; the Company's reply was filed in June 2001 after initial non-compliance with filing directions. The matter was mentioned several times and adjourned at the parties' joint request to allow attempts at an amicable out-of-court settlement. When the dispute came up for hearing, counsel for both parties presented a memorandum of settlement dated 2nd November 2001, signed by F.K. Waweru for the Union and R.K. Chirchir for the Company, and witnessed by L.W. Kariuki. The settlement provided for a 17% wage increase for all unionisable employees spread over the two years from 1st January 2000 to 31st December 2001. The parties prayed for an award by consent in those terms. Chemuttut J, having considered the settlement, found its terms fair and reasonable and entered an award by consent in terms of the memorandum. The award was dated and given at Nairobi on 6th November 2001. No costs order was made and no separate opinions were expressed.

Key legal issues

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01

Whether the memorandum of settlement should be adopted as a consent award

Holding

The court found the settlement fair and reasonable and awarded in terms of it

Reasoning

The parties, through their representatives, presented a duly signed memorandum of settlement dated 2nd November 2001, witnessed by Mr. L.W. Kariuki, agreeing to an out-of-court settlement of a 17% wage increase for all unionisable employees spread over two years (1st January 2000 to 31st December 2001). The judge considered the terms and concluded they were fair and reasonable, and entered an award by consent accordingly, without needing to adjudicate the dispute on its merits.

p. 2

Legal principles established

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  • A court may enter an award by consent where the terms of an out-of-court settlement of a trade dispute are fair and reasonable

Court orders

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  1. 1.Award entered in terms of the memorandum of settlement: a 17% wage increase for all unionisable employees spread over two years, from 1st January 2000 to 31st December 2001

Authorities

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Legislation

  • Trade Disputes Act, Cap. 234Section 14(7) and (9)(e)
Jurisdiction invoked
Trade Disputes Act, Cap. 234, section 14(7) and (9)(e) - dispute referred via Notification of Dispute with statutory certificate from the Labour Commissioner

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 Kenya Tea Packers Ltd (Cause 32 of 2001) [2001] KEIC 8 (KLR)", Case Analysis (2001). Cause 32 of 2001. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2001/8/eng@2001-11-06

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