[2017] KEELRC 189 (KLR)
The court found that the respondent had repeatedly admitted owing the salary arrears to the 29 grievants and had made promises to pay, including in correspondence with the Ministry of Labour. The respondent's only defense was its financial crisis and request for time to pay in installments. The court held that while...
Source-derived case information.
- Citation
- [2017] KEELRC 189 (KLR)
- Parties
- Applicant: Kenya Union of Commercial, Food and Allied Workers; Respondent: Mbilini Farmers Co-operative Society Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nyeri
- Jurisdiction
- Kenya
- Case Number
- Cause 70 of 2017
- Procedural Posture
- Employment Cause / Judgment
- Outcome
- Judgment for the claimant; respondent to pay salary arrears by specified date; no order as to costs.
- Judges
- B Ongaya
- Legal Topics
- Salary Arrears, Redundancy Benefits, Collective Bargaining, Admission of Debt
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Union of Commercial, Food and Allied Workers
Applicant
Mbilini Farmers Co-operative Society Limited
Respondent
Procedural Posture
Employment Cause / Judgment
Legal Issues
- 1 Whether the respondent is liable to pay salary arrears to the 29 grievants as claimed.
- 2 Whether the respondent's financial crisis justifies delay or installment payment of the salary arrears.
- 3 Whether the claimant is entitled to interest and costs.
Ratio Decidendi
The court found that the respondent had repeatedly admitted owing the salary arrears to the 29 grievants and had made promises to pay, including in correspondence with the Ministry of Labour. The respondent's only defense was its financial crisis and request for time to pay in installments. The court held that while the respondent's financial position could be considered in setting the payment timeline, it did not negate the obligation to pay the admitted debt. Judgment was therefore entered for the claimant for the full amount of salary arrears, with payment to be made by 1 June 2018, failing which interest at court rates would apply. Each party was ordered to bear its own costs.
Court Disposition
Judgment for the claimant; respondent to pay salary arrears by specified date; no order as to costs.
Orders
- The respondent to pay each grievant the salary arrears as listed in the claim, totaling Kshs.6,834,091.50, by 01.06.2018, failing which interest at court rates shall apply from the date of judgment until full payment.
- Each party to bear its own costs of the suit.
Full Case Text
Judgment text and source record
23 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF KENYA AT NYERI
CAUSE NO. 70 OF 2017
KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS....CLAIMANT
VERSUS
MBILINI FARMERS CO-OPERATIVE SOCIETY LIMITED................ RESPONDENT
(Before Hon. Justice Byram Ongaya on Wednesday, 20th December, 2017)
JUDGMENT
The claimant filed the memorandum of claim on 09. 03. 2017 alleging refusal by the respondent to pay redundancy benefits to 84 employees and refusal to pay salary arrears to the 84 employees. At paragraph 4 the claimant states that the issue of refusal to pay redundancy benefits is being handled elsewhere and so the issue for determination in the present suit is about refusal by the respondent to pay salary arrears. The claim is that the respondent was unable to pay full salary for the 84 employees from 1995 to 2007. Further, 55 employees opted out of the present claim so that the listed 29 grievants are the only aggrieved employees in the present suit. The total amount of money claimed is Kshs.6, 834,091. 50 in salary arrears. The claimant union and the respondent have held meetings with participation of the Ministry of Labour where the respondent undertook to pay the owed cash. By the letter dated 10. 03. 2014, the respondent wrote to the Ministry indicating the willingness to settle the dues once some shares had been sold. The Ministry of Labour issued a certificate of unresolved dispute on 04. 02. 2015. The claimant’s case is that the respondent failed to pay the dues as was variously promised using proceeds from cherry intake, sale of its Athi River Plot, and sale of co-operative shares. The prayers are for judgment against the respondent for:
a. A declaration that the affected employees deserve to be paid their outstanding salary arrears as tabulated by the respondent and given to the affected employees individually in writing.
b. An order directing the respondent to pay the said outstanding arrears within 14 days from the date of the judgment and in default to earn interest at court rates and execution to ensue.
c. Any other relief the court finds fit and appropriate to meet ends of justice.
The memorandum of response was filed on 02. 05. 2017 through Priscillar Kioko & Associates. The respondent prayed that the suit be dismissed with costs and with orders:
a. The respondent is given time to enable them settle the matter amicably and in instalments once the society is stable as the society is in financial crisis as members are no longer bringing coffee.
b. Any other relief as the honourable court may deem fit to grant.
The court has considered the response whose effect is that the respondent owes the money as claimed but that it needs time to pay the arrears because it is in a financial crisis. The respondent’s prayer is that it be given time to settle the debt as claimed by way of instalments. The court has also considered the correspondence as filed for the claimant and which show that the amount is owed as the respondent has severally admitted the claim. Thus, the court returns that the claimant is entitled as prayed for.
The court has considered the respondent’s financial position and returns that each party shall bear own costs of the suit. Further, the amount claimed will be paid by 01. 06. 2018 failing interest shall run at court rates from the date of this judgment till full payment.
In conclusion, judgment is hereby entered for the claimant against the respondent for:
a. The respondent to pay each grievant the salary arrears as listed on the first page of claim and being a sum of Kshs.6, 834, 091. 50 and to pay each by 01. 06. 2018 failing interest at court rates to be payable thereon from the date of this judgment till full payment.
b. Each party to bear own costs of the suit.
Signed, datedanddeliveredin court atNyerithisWednesday, 20th December, 2017.
BYRAM ONGAYA
JUDGE