[2004] KEELRC 9 (KLR)
The court found that the parties had freely negotiated and executed a memorandum of settlement resolving seven out of twelve issues in dispute. The settlement was duly signed by authorized representatives of both the Union and the Company and witnessed by a representative of the Federation of Kenya Employers. The...
Source-derived case information.
- Citation
- [2004] KEELRC 9 (KLR)
- Parties
- Applicant: Tailors & Textiles Workers’ Union; Respondent: Ngecha Industries Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 86 of 2003
- Procedural Posture
- Trade Dispute / Consent Award
- Outcome
- Award by consent entered in terms of the memorandum of settlement; unresolved issues treated as dropped.
- Legal Topics
- Collective Bargaining Agreement, Wage Increment, Housing Allowance, Leave Entitlements, Night Shift Allowance, Funeral Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Tailors & Textiles Workers’ Union
Applicant
Ngecha Industries Ltd
Respondent
Procedural Posture
Trade Dispute / Consent Award
Legal Issues
- 1 Whether the parties are entitled to the terms agreed in the memorandum of settlement regarding wage increase, housing allowance, medical treatment, leave travelling allowance, annual paid leave, night shift allowance, and funeral expenses.
- 2 Whether unresolved issues should be treated as dropped.
Ratio Decidendi
The court found that the parties had freely negotiated and executed a memorandum of settlement resolving seven out of twelve issues in dispute. The settlement was duly signed by authorized representatives of both the Union and the Company and witnessed by a representative of the Federation of Kenya Employers. The court held that the terms of the settlement were fair and reasonable, and therefore adopted the memorandum as the award of the court. The remaining unresolved issues, having not been addressed or pursued further by either party, were treated as dropped. The court thus entered an award by consent in accordance with the terms set out in the memorandum of settlement.
Court Disposition
Award by consent entered in terms of the memorandum of settlement; unresolved issues treated as dropped.
Orders
- General wage increase of 6% for the first year and a further 6% for the second year.
- Housing allowance of Kshs.1,400 for the duration of the CBA.
Full Case Text
Judgment text and source record
44 paragraphs
IN THE INDUSTRIAL COURT OF KENYA AT NAIROBI.
(Present: Charles P. Chemmuttut, J.)
CAUSE NO.86 OF 2003.
TAILORS & TEXTILES WORKERS’ UNION………………………………….Claimants.
v.
NGECHA INDUSTRIES LTD………………………………………………….Respondents.
Issues in Dispute:-
1. Annual Leave.
2. Sick Leave.
3. Redundancy.
4. Death of an Employee.
5. Retirement.
6. Termination of Employment.
7. General Wage Increment.
8. Minimum Wage.
9. Housing Allowance.
10. Night Shift Allowance.
11. Leave Travelling Allowance.
12. Medical Treatment.
No appearance for the Claimants (hereinafter called the Union).
No appearance for the Respondents (hereinafter called the Company).
A W A R DB Y C O N S E N T.
The Notification of Dispute, Form “A”, dated 12th April, 2002, together with the statutory certificates from the Labour Commissioner under Section 14(9)(e) of the Trade Disputes Act, Cap.234, Laws of Kenya, were received by the Court on 10th September, 2003. The Union submitted its memorandum on 31st October, 2003, while the Company filed its reply statement on 17th February, 2004.
Consequently, the matter was adjourned on a couple of occasions on the joint application of the parties to enable them explore the possibility of an amicable settlement out of Court; and this morning, the parties presented a memorandum of settlement of 7 out of 12 issues, re: Nos. 7, 9, 12, 11, 1, 10 and 4 respectively, hereinabove, and duly signed by Mr. William Muga Aketch, General Secretary, Mr. Francis Muthuri, Branch Secretary, andMr. Cosmas Orowe, on behalf of the Union and Mr. Raju Raja, Director, on behalf of the Company. The memorandum of settlement waswitnessed by M. Onyango (Mrs), Senior Executive Officer, F.K.E. The parties prayed that an award by consent be entered in terms of the said settlement, which is reproduced below:-
“1) General Wage Increase.
6% for the first year and a further 6% for the second year.
2)Housing Allowance.
Kshs.1,400/= for the duration of the CBA.
3)Medical Treatment.
As per Medical Treatment Rules (1977).
4)Leave Travelling Allowance.
Kshs.1,300/= for the duration of the CBA.
5)Annual Paid Leave.
23 working days per annum.
6)Night Shift Allowance.
Kshs.20/= per night shift worked.
7)Death of an Employee.
Parties agreed that the employer will contribute Kshs.11,000/= towards funeral expenses in the event of death of an employee.
All remaining clauses of the CBA will be retained as per outgoing CBA.”
The parties are silent on issues Nos. 2, 3, 5, 6 and 8, hereinabove; and this being the case, the same are treated as dropped.
In my humble view, the terms of the settlement are fair and reasonable, and I award as prayed for in terms thereof.
DATED and given at Nairobi this 27th day of July, 2004.
Charles P. Chemmuttut,
JUDGE.