[2016] KEELRC 1475 (KLR)
The court determined that while the economic environment and rising cost of living justified some improvement in employee terms, the employer's sustainability and growth must also be considered. After reviewing inflation data and the respondent's financial position, the court awarded increases in leave traveling...
Source-derived case information.
- Citation
- [2016] KEELRC 1475 (KLR)
- Parties
- Applicant: Kenya Hotels and Allied Workers Union; Respondent: Nairobi Gymkhana Sports Club
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1985 of 2015
- Procedural Posture
- Economic Dispute / Final Award
- Outcome
- Award partly in favour of the claimant; parties to conclude CBA within 30 days; no order as to costs.
- Judges
- L Ndolo
- Legal Topics
- Collective Bargaining Agreements, Wage Increments, Employee Allowances, Service Charge, Employee Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Hotels and Allied Workers Union
Applicant
Nairobi Gymkhana Sports Club
Respondent
Procedural Posture
Economic Dispute / Final Award
Legal Issues
- 1 Whether the union's demands for improved terms in the collective bargaining agreement are justified in light of economic conditions and the employer's financial position.
- 2 What are the appropriate levels for leave traveling allowance, funeral assistance, wage increment, house allowance, staff food, and service charge for the employees of the respondent.
- 3 Whether a general bonus provision should be awarded.
Ratio Decidendi
The court determined that while the economic environment and rising cost of living justified some improvement in employee terms, the employer's sustainability and growth must also be considered. After reviewing inflation data and the respondent's financial position, the court awarded increases in leave traveling allowance, funeral assistance, wage increments, house allowance, and mandated provision of staff food and service charge in line with industry practice. However, the court found no sufficient basis for a general bonus provision and declined to award it. The court directed the parties to finalize the collective bargaining agreement within 30 days, with each party bearing its own...
Court Disposition
Award partly in favour of the claimant; parties to conclude CBA within 30 days; no order as to costs.
Orders
- Leave traveling allowance set at Kshs.6,000.
- Employer to provide wholesome food to employees working between 11.00 am and 11.00 pm.
Full Case Text
Judgment text and source record
59 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO 1985 OF 2015
KENYA HOTELS AND ALLIED WORKERS UNION...........................CLAIMANT
VS
NAIROBI GYMKHANA SPORTS CLUB..........................................RESPONDENT
AWARD
1. This is an economic dispute between Kenya Hotels and Allied Workers Union, the Claimant and Nairobi Gymkhana Sports Club, the Respondent. The Claimant is a registered trade union operating in the hospitality sector and the Respondent is a private club which offers hospitality services to its members.
2. The dispute arises from a disagreement on the terms of a new collective bargaining agreement, specifically on the following items:
Leave traveling allowance
Bonus
Staff food
Funeral assistance upon the death of an employee
General wage increment
House allowance
Service charge
3. Proceedings at the conciliation stage did not resolve these issues which have therefore been escalated to this Court for determination.
4. The deadlock plays out as follows:
Item Union Demand Employer's Offer
Leave traveling allowance Kshs.6,500 Kshs.6,000
Bonus Kshs.6,000 Discretionary
Staff food At employer's cost Cost sharing
Funeral assistance Kshs.100,000 Kshs.80,000
General wage increment
1st year-15%
2nd year- 15%
1st year-9%
2nd year- 10%
House allowance
1st year-Kshs.8,000
2nd year-Kshs.8,500
1st year-Kshs.6,300
2nd year-Kshs.6,600
Service charge To be activated No offer
5. In determining economic disputes, the Court must consider the macro economic environment in which the parties operate as well as the specific employer's productivity and profitability levels.
6. The Claimant referred the Court to the Consumer Price Indices (CPI) and inflation rates (2013-2015) published by the Kenya National Bureau of Statistics. Looking at these statistics, both overall CPI and inflation rates have generally been on an upward trend.
7. The Court was also referred to the Respondent's financial statements which reflect a fairly healthy position. In response, the Respondent states that the surpluses made are applied towards capital development and improvement.
8. I have considered the submissions by the parties and balancing the needs of the employees against the employers' sustainability and growth projections I make the following award:
Leave traveling allowance – Kshs.6,000
The employer will provide wholesome food to employees working between 11. 00 am and 11. 00 pm
Funeral assistance – Kshs.100,000
General wage increment:
1st year-12. 5%
2nd year – 15%
House allowance:
1st year – 7,000
2nd year –7,500
Service charge – to be effected in accordance with industry practice
9. No basis was laid for a general provision for bonus and I therefore make no award on this account.
10. I direct the parties to conclude the pending collective bargaining agreement within the next 30 days from the date of this award.
11. Each party will bear their own costs.
12. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBI THIS
1ST DAY OF APRIL 2016
LINNET NDOLO
JUDGE
Appearance:
Mr. Simiyu (Union Representative) for the Claimant
Mr. Nyaencha for the Respondent