[2004] KEELRC 10 (KLR)
The court found that the parties had reached a fair and reasonable settlement regarding the redundancy benefits owed to the 45 employees. The consent memorandum specified the total amount due and the payment schedule, which the court adopted as its award. The court emphasized that resolving the dispute by consent,...
Source-derived case information.
- Citation
- [2004] KEELRC 10 (KLR)
- Parties
- Applicant: Kenya Building, Construction, Timber, Furniture & Allied Industries Employees’ Union; Respondent: Mareba Eldoret Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 20 of 2003
- Procedural Posture
- Employment Cause / Consent Award
- Outcome
- Award by consent; claim settled.
- Legal Topics
- Redundancy Benefits, Collective Bargaining, Settlement Agreements
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Building, Construction, Timber, Furniture & Allied Industries Employees’ Union
Applicant
Mareba Eldoret Ltd
Respondent
Procedural Posture
Employment Cause / Consent Award
Legal Issues
- 1 Whether the respondent was obligated to pay redundancy benefits to 45 employees.
- 2 Whether the parties reached a fair and reasonable settlement regarding the redundancy benefits.
Ratio Decidendi
The court found that the parties had reached a fair and reasonable settlement regarding the redundancy benefits owed to the 45 employees. The consent memorandum specified the total amount due and the payment schedule, which the court adopted as its award. The court emphasized that resolving the dispute by consent, with clear terms for payment, was consistent with the objectives of the Trade Disputes Act and the interests of justice for both parties. The award by consent was therefore entered as the final resolution of the matter.
Court Disposition
Award by consent; claim settled.
Orders
- The respondent shall pay Kshs.4,455,251.40 to the claimants as agreed.
- Payment shall be made in twenty-nine instalments of Kshs.150,000 each and one final instalment of Kshs.105,251.40, commencing 1st December 2003 and thereafter on the first day of each succeeding month until payment in full.
Full Case Text
Judgment text and source record
45 paragraphs
IN THE INDUSTRIAL COURT OF KENYA
AT NAIROBI.
(Present: Charles P. Chemmuttut, J.)
CAUSE NO.20 OF 2003.
KENYA BUILDING, CONSTRUCTION, TIMBER,FURNITURE &
ALLIED INDUSTRIES EMPLOYEES’UNION.....................................................Claimants.
v.
MAREBA ELDORET LTD.............................................................................Respondents.
Issue in Dispute:
“Refusal to pay redundancy benefits to 45 employees” (hereinafter called the grievants), namely:-
1. Charles Ochango 2. Richard O. Mulakha
3. Edward M. Kimuhu 4. Bernard G. Kariuki
5. Martin S. Zakayo 6. Joshua A. Agoya
7. John Kamindi 8. Justus A. Otunga
9. Hudson A. Savala 10. Jackson Wambugu
11. Bernard Ongessa 12. Morton Okida
13. Michael A. Mabinda 14. Julius Mukaka
15. Ainea M. Mbecha 16. Mathew Onyango
17. Joseph Wawire 18. Fred Murunga
19. Ephraim Alugaya 20. Gerald Akonya
21. Wellington Odera 22. Samwel Mulera
23. Ronald Wanjala 24. Michael Likwilu
25. Boniface Muhati 26. Ben V. Ochieng
27. Fred Musamali 28. Peter Asibiko
29. Simon Mulinge 30. Sammy Mwangi
31. Mary Nthiga 32. Frank Oduba
33. Patrick Oduory 34. Samson Nandi
35. Joshua Yimbebi 36. Anne Marabu
37. Mary Kinuthia 38. Bernard Sidori
39. Enos Mwangale 40. Issack Mwaura
41. Kennedy Manda 42. Alfred Lubanga
43. Peter Kibira 44. Joseph Lubanga
45. David Ochieng
E.M. Gikunju, Industrial Relations Officer, for the Claimants (hereinafter called the Union).
J.A. Wananda, Advocate, of Shapley Barret & Co., Advocates, for the Respondents (hereinafter called the Company).
A W A R DB Y C O N S E N T.
On 7th April, 2003, the Minister for Labour referred this dispute to the Court for consideration and determination in accordance with the powers vested in him by Section 8 of the Trade Disputes Act, Cap.234, Laws of Kenya, (which is hereinafter referred to as the Act); and his reference, together with the statutory certificates from the Labour Commissioner and the Minister himself under Section 14(9)(e) and (f) of the Act, were received by the Court on 8th April, 2003. The dispute was then listed for mention on 24th April, 2003, and the parties were notified to attend. Mr. Gikunju for the Union attended but there was no appearance for the Company. In spite of the latter’s absence, however, the parties were directed to submit or file their respective written memoranda or statements by 26th May and 26th June, 2003, respectively, and the dispute was fixed for hearing on 15th July, 2003. The parties were again notified to comply and attend. Mr. Gikunju submitted his memorandum on 29th May, 2003, but the Company neither filed its reply statement as directed nor attended. On 15th July, 2003, only Mr. Gikunju attended; and under the circumstances, the dispute was rescheduled for hearing on 29th October, 2003, and the Company was granted another opportunity to file its reply statement by 15th August, 2003. But it did not do so. On 29th October, 2003, Mr. J.A. Wananda, who appeared for the Company, applied for adjournment of the matter to enable the parties explore the possibility of an amicable settlement out of Court. Mr. Gikunju for the Union did not object to the application for adjournment, and the case was stood over generally.
Consequently, the parties presented or filed the following memorandum of settlement, dated 19th December, 2003, duly signed by Messrs. Wananda and Gikunju for the parties:-
“By consent,
(a)The amount now due has been agreed at Kshs.4,455,251. 40.
(b)The said amount be settled in twenty-nine (29) instalments ofKshs.150,000/= each and one of Kshs.105,251. 40, commencing the first day of December 2003 and thereafter on the first day of each succeeding month until payment in full.”
In my humble consideration, the terms of the amicable settlement are fair and reasonable, and I enter an award by consent as above.
DATED and given in Nairobi this 19th day of February, 2004.
Charles P. Chemmuttut,
JUDGE.