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IndustrialOtherCause 12 of 2001· [2001] KEIC 10 (KLR)

Kenya Engineering Workers’ Union v Stainless Steel Products Ltd (Cause 12 of 2001) [2001] KEIC 10 (KLR)

Industrial Court at Nairobi
6 September 2001
CCCP Chemuttut
458 words in judgment
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The bottom line

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Kenya's Industrial Court turned a union-employer settlement into a binding award, but a worker left out of the settlement got nothing.

What this practically means

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Executive summary

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This is a consent award of the Industrial Court at Nairobi in a trade dispute referred under section 14(9)(e) and (f) of the Trade Disputes Act, Cap. 234. The Kenya Engineering Workers' Union notified a dispute against Stainless Steel Products Ltd by Notification of Dispute dated 14th February 2000, with statutory certificates from the Minister for Labour and the Labour Commissioner; the file was received by the Court on 27th February 2001. The Union filed its memorandum but the Company repeatedly failed to file a reply statement as directed. When the matter came up on 11th September 2001, the Company's representative filed a memorandum of settlement dated 27th July 2001 in respect of the grievant, Mr. Peter Mwangi, providing for payment of Kshs. 13,960.90 in full and final settlement of the dispute, comprising one month's salary in lieu of notice (Kshs. 2,329.30), 11 days worked (Kshs. 1,239.30), gratuity for 4 years at 16 days per completed year (Kshs. 5,733.70) and two months' salary as compensation (Kshs. 4,658.60). The memorandum was signed by the Company, the Union, the grievant himself and Mr. F.O. Odindo. The parties prayed that an award by consent be entered in the terms of the settlement. Chemuttut, J found the terms fair and reasonable and awarded accordingly. The parties' settlement was silent on the entitlements of Mrs. Lucy Njoki Josia; her case was therefore treated as withdrawn, dropped or not pressed. No costs order was made.

Key legal issues

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Adoption of the out-of-court settlement as a consent award

Holding

The court adopted the memorandum of settlement signed by the parties and the grievant and entered an award by consent in its terms

Reasoning

The dispute, notified under the Trade Disputes Act, went to certificate stage. The respondent never filed a reply statement as directed. On the hearing date the parties filed a signed memorandum of settlement for the grievant, Peter Mwangi, providing terminal benefits of Kshs. 13,960.90 in full and final settlement. They prayed for a consent award. The court assessed the terms, found them fair and reasonable, and awarded accordingly. The claim concerning Mrs. Lucy Njoki Josia, not covered by the settlement, was treated as withdrawn or not pressed.

p. 1

Legal principles established

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  • The Industrial Court will enter an award by consent in terms of a memorandum of settlement where the terms are fair and reasonable

Court orders

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  1. 1.An award by consent entered in terms of the memorandum of settlement: payment to Mr. Peter Mwangi of terminal benefits totalling Kshs. 13,960.90 (one month's salary in lieu of notice Kshs. 2,329.30; 11 days worked Kshs. 1,239.30; gratuity 4 years at 16 days per completed year Kshs. 5,733.70; two months' salary as compensation Kshs. 4,658.60) in full and final settlement of the dispute
  2. 2.Mrs. Lucy Njoki Josia's case treated as withdrawn, dropped or not pressed
Jurisdiction invoked
Section 14(9)(e) and (f) of the Trade Disputes Act, Cap. 234, Laws of Kenya

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 Engineering Workers’ Union v Stainless Steel Products Ltd (Cause 12 of 2001) [2001] KEIC 10 (KLR)", Case Analysis (2001). Cause 12 of 2001. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2001/10/eng@2001-09-06

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