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ELRCAllowedCause No. 16 of 2002· [2002] KEELRC 13 (KLR)

KENYA SHOE & LEATHER WORKERS’ UNION v SLAPPER SHOE INDUSTRIES LTD [2002] KEELRC 13 (KLR)

Industrial Court of Kenya
25 September 2002
CCCharles P. Chemmuttut
747 words in judgment
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The bottom line

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Kenya's Industrial Court approved a negotiated settlement giving shoe factory workers two 8.5% pay rises, housing and medical benefits, and permanent jobs for twenty casuals.

What this practically means

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Executive summary

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The Industrial Court of Kenya at Nairobi (Charles P. Chemmuttut, J.) delivered a consent award in a trade dispute referred by the Labour Commissioner under a statutory certificate issued under section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234. The Notification of Dispute dated 14th November 2001 raised eleven issues between the Kenya Shoe & Leather Workers' Union and Slapper Shoe Industries Ltd. Of these, the parties conceded that four issues (Warning System, Promotion, Production Wages and Sick Leave) had been settled or retained, leaving seven for determination: Leave Travelling Allowance, Medical Care, Termination of Service, Basic Minimum Wages, Housing Allowance, General Wage Increase and Casual Employment. Attempts at amicable settlement during the hearing of 10th September 2002 failed and the case was adjourned sine die on the parties' joint application. The parties subsequently filed a memorandum of settlement back-dated to 10th September 2002, signed by Mr. L.W. Kariuki for the Company and Mr. Joseph Bolo for the Union, providing for a general wage increase of 8.5% effective 1st June 2001 and a further 8.5% from 1st June 2002, a leave travelling allowance of Kshs.2,000, housing allowance of 15% of basic salary subject to a minimum of Kshs.1,800 per month, medical care reimbursement of Kshs.5,500 in-patient and Kshs.3,500 out-patient per employee per year, rounding off of basic minimum wages to the nearest Kshs.100, retention of the termination of service clause as in the previous agreement, and omission of the casual employment clause from the CBA with conversion of twenty casuals to monthly terms from 1/10/2002. Finding the terms fair and reasonable, the court awarded in terms of the settlement. No costs order was made.

Key legal issues

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Whether an award by consent should be entered in terms of the parties' memorandum of settlement on the seven remaining issues in dispute

Holding

Yes. The court found the settlement terms fair and reasonable and awarded in terms thereof.

Reasoning

The dispute was referred under a statutory certificate from the Labour Commissioner under section 14 of the Trade Disputes Act. After filing of memoranda and failed attempts at settlement, including an adjournment sine die to explore settlement, the parties filed a memorandum of settlement back-dated to 10th September 2002 covering the seven pending issues and jointly prayed for an award by consent. The court examined the terms, found them fair and reasonable, and entered an award in terms of the settlement.

p. 3

Legal principles established

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  • Where parties to a trade dispute settle the issues in dispute, the Industrial Court may enter an award by consent in terms of the settlement if satisfied that the terms are fair and reasonable.

Court orders

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  1. 1.Award by consent entered in terms of the memorandum of settlement dated 10th September 2002 covering General Wage Increase (8.5% with effect from 1st June 2001 and a further 8.5% from 1st June 2002), Leave Travelling Allowance of Kshs.2,000, Housing Allowance at 15% of basic salary subject to a minimum of Kshs.1,800 per month, Medical Care reimbursements (In-Patient Kshs.5,500; Out-Patient Kshs.3,500 per employee per year), rounding off of basic minimum wages to the nearest Kshs.100, retention of the Termination of Service clause as in the previous agreement, and omission of the Casual Employment clause from the Collective Bargaining Agreement with conversion of twenty casuals to monthly terms with effect from 1/10/2002
  2. 2.Award dated and given at Nairobi on 25th September 2002
Jurisdiction invoked
Section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234, Laws of Kenya (statutory certificate of the Labour Commissioner referring the dispute)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "KENYA SHOE & LEATHER WORKERS’ UNION v SLAPPER SHOE INDUSTRIES LTD [2002] KEELRC 13 (KLR)", Case Analysis (2002). Cause No. 16 of 2002. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/13/eng@2002-09-25

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.