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IndustrialDismissedCause 40 of 2000· [2001] KEIC 17 (KLR)

Kenya Engineering Workers’ Union v Premier Rolling Mills Ltd (Cause 40 of 2000) [2001] KEIC 17 (KLR)

Industrial Court of Kenya
21 August 2001
CCCP ChemuttutSMSM MaithyaAKAK Kerich
4,212 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~17 min to read original · ~4 min brief

The bottom line

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Kenya's Industrial Court ruled that workers who defied a lawful order cancelling their leave went on an illegal strike, so their summary dismissal was justified.

What this practically means

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Executive summary

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This was a reference by the Minister for Labour to the Industrial Court under Section 8 of the Trade Disputes Act, Cap.234, concerning the alleged unlawful lock-out of 46 employees of Premier Rolling Mills Ltd. The Union claimed the grievants, engaged as casuals in 1990 and confirmed permanent in 1994, were locked out after the Company unilaterally cancelled a mutually agreed arrangement for early payment of December 1994 wages, loans, bonuses and annual leave; the Company maintained that the grievants staged an unlawful strike and work stoppage from 23rd December 1994 and were summarily dismissed on 30th January 1995 under Section 17(a) of the Employment Act. The Minister's investigator had found an unlawful strike and recommended that the management's action be upheld, a recommendation the Union rejected. The Union sought notice pay, leave and overtime allowances, service pay of 15 days per completed year and 12 months' compensation for loss of employment. The Court held that the grievants defied the Managing Director's lawful and reasonable order cancelling their annual leave, absented themselves without lawful cause, and refused to apologise or re-apply for their jobs despite being given the opportunity (two of them did and were re-employed). The choice of punishment was a purely managerial function; the Court found no extenuating circumstances justifying interference. It upheld the summary dismissal and rejected the Union's demands. The award contains no express costs order.

Key legal issues

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01

Whether the grievants were locked out or staged an unlawful strike

Holding

The grievants absented themselves from duty without lawful cause after defying a lawful order to resume work, and were not locked out

Reasoning

The Court found that the grievants proceeded on annual leave on 23rd December 1994 against the express order of the Managing Director cancelling the leave, and stayed away until 30th January 1995. Support staff and other unionisable employees continued working, undermining the lock-out claim. The Minister for Labour's investigation likewise found an illegal strike and that the Company acted in good faith. The claim of a lock-out therefore failed.

p. 8
02

Whether the summary dismissal under Section 17(a) of the Employment Act was justified

Holding

The disobedience and absence amounted to misconduct justifying summary dismissal; the dismissal was upheld

Reasoning

The grievants defied a lawful, reasonable order to resume work, were given an opportunity to apologise and re-apply for their jobs (as two of their number did and were re-employed without loss), yet refused. The Court held the Managing Director was entitled to cancel the annual leave and that the willful absence constituted misconduct under Section 17 of the Employment Act, so the summary dismissal was lawful and within the Company's managerial prerogative.

p. 9

Legal principles established

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  • In case of an illegal strike, the management may legally lock-out or take disciplinary action against the employees
  • The choice of punishment for breach of discipline amounting to misconduct is a purely managerial function in which the Court will not interfere absent extenuating circumstances

Court orders

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  1. 1.The action taken by the Company against the grievants (summary dismissal) was upheld
  2. 2.The Union's demands for terminal benefits and compensation were rejected

Authorities

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Legislation

  • Trade Disputes Act, Cap.234, Laws of KenyaSections 4, 8, 14(9)(e), 14(9)(f), 26
  • Employment Act, Cap.226, Laws of KenyaSection 17(a)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap.234, Laws of Kenya (dispute referred by the Minister for Labour)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (8)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya Engineering Workers’ Union v Premier Rolling Mills Ltd (Cause 40 of 2000) [2001] KEIC 17 (KLR)", Case Analysis (2001). Cause 40 of 2000. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2001/17/eng@2001-08-21

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