[2017] KEELRC 1042 (KLR)
The court found that the forms issued to the claimants were not new contracts of employment but data collection forms for updating employee details following a corporate merger and restructuring. The respondent's actions, including operational relocation and potential staff transfers, were within its managerial...
Source-derived case information.
- Citation
- [2017] KEELRC 1042 (KLR)
- Parties
- Applicant: Nimrod Masika; Applicant: Vincent Busha; Applicant: Dennis Ratemo; Applicant: Francis Kabui; Applicant: Patrick Kingoo; Applicant: Naftal Orias; Applicant: Peter Orina; Applicant: Paul Waithaka; Applicant: Samiu Hasan; Applicant: Samwel Mwachaka; Applicant: John Gakuo; Applicant: John Muriuki; Applicant: Pasirio Ireri; Applicant: Simon Nderitu; Applicant: Steward Onyuro; Applicant: Jared Ondara; Applicant: Calvin Nyanamba; Applicant: Geofrey Kadenge; Applicant: Robert Atura; Applicant: Patrick Inyanje; Applicant: Vincent Mulwa; Applicant: Peter Nguru; Applicant: Boniface Munayo; Applicant: Maxwell Wanyiri; Applicant: Fredrick Mukhwana; Applicant: Peter Gitonga; Applicant: Kennedy Musundi; Respondent: Crown Beverages Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 694 of 2017
- Procedural Posture
- Miscellaneous Application / Ruling on Interlocutory Application for Conservatory Orders
- Outcome
- application dismissed
- Judges
- L Ndolo
- Legal Topics
- Employee Redeployment, Employment Contract Variation, Conservatory Orders, House Allowance Claims
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Nimrod Masika
Applicant
Vincent Busha
Applicant
Dennis Ratemo
Applicant
Francis Kabui
Applicant
Patrick Kingoo
Applicant
Naftal Orias
Applicant
Peter Orina
Applicant
Paul Waithaka
Applicant
Samiu Hasan
Applicant
Samwel Mwachaka
Applicant
John Gakuo
Applicant
John Muriuki
Applicant
Pasirio Ireri
Applicant
Simon Nderitu
Applicant
Steward Onyuro
Applicant
Jared Ondara
Applicant
Calvin Nyanamba
Applicant
Geofrey Kadenge
Applicant
Robert Atura
Applicant
Patrick Inyanje
Applicant
Vincent Mulwa
Applicant
Peter Nguru
Applicant
Boniface Munayo
Applicant
Maxwell Wanyiri
Applicant
Fredrick Mukhwana
Applicant
Peter Gitonga
Applicant
Kennedy Musundi
Applicant
Crown Beverages Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Interlocutory Application for Conservatory Orders
Legal Issues
- 1 Whether the respondent forced the claimants to sign new employment contracts.
- 2 Whether the respondent's actions amounted to victimization or intimidation of the claimants.
- 3 Whether the claimants were entitled to conservatory orders restraining transfers and contract changes.
Ratio Decidendi
The court found that the forms issued to the claimants were not new contracts of employment but data collection forms for updating employee details following a corporate merger and restructuring. The respondent's actions, including operational relocation and potential staff transfers, were within its managerial prerogative and did not amount to victimization or intimidation. The claimants failed to demonstrate a prima facie case warranting the grant of conservatory orders. The issue of house allowance was deferred to the main hearing as agreed by counsel. Consequently, the application for interlocutory relief was dismissed as unmeritorious, and interim orders previously granted were vacated.
Court Disposition
application dismissed
Orders
- The claimants' application dated 11th April 2017 is dismissed with costs in the cause.
- The interim orders granted on 12th April 2017 are vacated.
Full Case Text
Judgment text and source record
66 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO 694 OF 2017
NIMROD MASIKA……………………………….1STCLAIMANT
VINCENT BUSHA……………………………….2NDCLAIMANT
DENNIS RATEMO……………………………….3RDCLAIMANT
FRANCIS KABUI………………………………....4THCLAIMANT
PATRICK KINGOO……………………………….5THCLAIMANT
NAFTAL ORIASO………………………………...6THCLAIMANT
PETER ORINA……..……………………………..7THCLAIMANT
PAUL WAITHAKA………………………………..8THCLAIMANT
SAMIU HASAN….………………………………..9THCLAIMANT
SAMWEL MWACHAKA………………………..10THCLAIMANT
JOHN GAKUO…….…………………………….11THCLAIMANT
JOHN MURIUKI…………………………………12THCLAIMANT
PASIRIO IRERI………..………………….……...13THCLAIMANT
SIMON NDERITU………………………..………14THCLAIMANT
STEWARD ONYURO……………………………15THCLAIMANT
JARED ONDARA…………………………...........16THCLAIMANT
CALVIN NYANAMBA………………..…………...17THCLAIMANT
GEOFREY KADENGE…………………………….18THCLAIMANT
ROBERT ATURA………………………….……...19THCLAIMANT
PATRICK INYANJE……………………….………20THCLAIMANT
VINCENT MULWA………………………………..21STCLAIMANT
PETER NGURU…………………………………...22NDCLAIMANT
BONIFACE MUNAYO……………………………..23RDCLAIMANT
MAXWELL WANYIRI……………………………..24THCLAIMANT
FREDRICK MUKHWANA…………………………25THCLAIMANT
PETER GITONGA……………….…………………26THCLAIMANT
KENNEDY MUSUNDI……………………………...27THCLAIMANT
VERSUS
CROWN BEVERAGES LIMITED……………………RESPONDENT
RULING
1. The Claimants’ application brought by Notice of Motion dated 11th April 2017 and filed in Court on even date seeks the following orders:
a) An order restraining the Respondent from forcing the Claimants into signing new agreements;
b) An order restraining the Respondent from interfering with the Claimants’ terms of employment;
c) An order directing the Respondent not to discriminate and/or victimize the Claimants;
d) An order directing the Respondent to pay each of the Claimants house allowance from the respective dates of employment;
e) An order compelling the Respondent to stop the mass transfer of its employees to Molo and Mombasa.
2. The application which is supported by an affidavit sworn by the 1st Claimant, Nimrod Masika on 11th April 2011 is premised on the following grounds:
a) Vide letters dated 7th December 2016, the Claimants were redeployed to new premises in Embakasi;
b) The Claimants however noticed that they were operating under premises owned by Nairobi Coca-Cola Bottlers;
c) The Claimants were given documents to fill and sign which in essence amounted to new contracts of employment by Nairobi Coca-Cola Bottlers;
d) Despite the Claimants’ request for an explanation, they were subjected to constant pressure, intimidation and threats in a bid to have them accept the unilateral alteration of their contracts of employment;
e) The Claimants were addressed by the Integration Manager of the Respondent who told them that there would be mass transfers that were likely to affect most of the Claimants;
f) The Respondent’s actions amount to victimization of the Claimants;
g) The Claimants are aggrieved by the Respondent’s actions and stand to suffer an injustice unless the orders sought are granted;
h) It is in the interest of justice that the application is allowed.
3. The Respondent’s response is contained in a replying affidavit sworn by its Integration Manager, Andrew Musingo on 10th May 20917. Musingo depones that the Claimants serve in various capacities as drivers and delivery representatives in the Respondent’s Warehousing and Distribution Department.
4. He further depones that prior to July 2016 the Respondent was a subsidiary of SAB Miller PLC, distributing both beer and Keringet mineral water in Kenya. In July 2016 SAB Miller and Coca-Cola Sabco PLC merged their non-alcoholic beverage operations to form a new entity known as Coca-Cola Beverages Africa. The Respondent became a subsidiary of Coca-Cola Beverages Africa with its mineral water brand Keringet becoming a brand of the Coca-Cola Company to be distributed through the Coca-Cola franchise bottling companies in Kenya.
5. As a result of the merger into Coca-Cola Beverages Africa, the Respondent had to split and separate the beer business to a new entity Kenbev Ltd with its head office operations remaining in Ruiru. In December 2016, the Respondent leased a new warehouse facility to temporarily relocate its operations from Ruiru effective 1st January 2017.
6. Having become a subsidiary of Coca-Cola Beverages Africa, the Respondent embarked on a process of integration and upgrading of its facilities and processes to meet the Coca-Cola operating requirements, including an update of employee details. In order to achieve this objective, the Respondent issued the Claimants with hiring input forms requiring them to update their personal details.
7. Musingo states that the hiring input forms are merely data collection forms and do not contain any offers of employment, terms and conditions of service or even the name of another company. The allegation by the Claimants that these forms are new contracts of employment is therefore false.
8. Musingo adds that the Respondent was in the process of reconfiguring its distribution model to enable it serve more customers through the Coca-Cola distribution network. This would eventually result in the need to re-deploy warehousing and distribution staff from Embakasi to Molo based on operational needs and business requirements.
9. The Claimants seek conservatory orders in this application and as restated by Musinga J (as he then was) in Centre for Rights Education (CREAW) & 7 others v Attorney General [2011] eKLR, a party seeking such an order must demonstrate a prima facie case with a likelihood of success.
10. The Claimants’ complaints are that they are being forced to sign new contracts of employment and are threatened with unwarranted transfers. I have looked at the hiring input form in issue and find nothing therein that suggests issuance of new employment contracts to the Claimants.
11. Further, the Court considered the detailed account given by the Respondent’s Integration Manager, Andrew Musingo in his affidavit sworn on 10th May 2017 on the Respondent’s business remodeling and operational repositioning. On this score, the Court found that the steps taken by the Respondent, including operational relocation and staff transfers, were within its mandate as an enterprise and found no basis for the allegations of victimization and intimidation made by the Claimants.
12. Regarding the prayer on house allowance, Counsel for the Claimants agreed in oral submissions that this is a matter to be determined at the main hearing.
13. Overall, I find the Claimants’ application unmeritorious and proceed to dismiss it with costs in the cause. The interim orders granted on 12th April 2017 are vacated.
14. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBITHIS 30THDAY OF JUNE 2017
LINNET NDOLO
JUDGE
Appearance:
Mr. Okatch for the Claimants
Miss Oyombe for the Respondent