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ELRCOtherCause No. 86 of 2003

TAILORS & TEXTILES WORKERS’ UNION v NGECHA INDUSTRIES LTD (Cause 86 of 2003) [2004] KEELRC 9 (KLR)

Industrial Court of Kenya
27 July 2004
CCCharles P. Chemmuttut
450 words in judgment
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The bottom line

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Kenya's Industrial Court adopted a union-employer settlement as a binding award, but any dispute issues left out of the signed settlement were treated as dropped.

What this practically means

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Executive summary

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This was a consent award in a collective trade dispute referred to the Industrial Court of Kenya at Nairobi by the Tailors & Textiles Workers' Union against Ngecha Industries Ltd. The Notification of Dispute, dated 12th April 2002, with statutory certificates from the Labour Commissioner under Section 14(9)(e) of the Trade Disputes Act, Cap. 234, was received by the court on 10th September 2003. The Union filed its memorandum on 31st October 2003 and the Company its reply on 17th February 2004. Twelve issues were in dispute, covering annual leave, sick leave, redundancy, death of an employee, retirement, termination of employment, general wage increment, minimum wage, housing allowance, night shift allowance, leave travelling allowance and medical treatment. After adjournments at the parties' joint request to explore settlement, they presented a signed memorandum of settlement covering seven issues, signed by union officials (including General Secretary William Muga Aketch) and by Raju Raja, Director, for the Company, witnessed by a Senior Executive Officer of the F.K.E. The settlement provided for a 6% wage increase in each of two years, housing allowance of Kshs. 1,400, medical treatment per the 1977 Medical Treatment Rules, leave travelling allowance of Kshs. 1,300, 23 working days annual leave, night shift allowance of Kshs. 20 per shift, and an employer funeral contribution of Kshs. 11,000, with remaining CBA clauses retained. Chemmuttut J found the terms fair and reasonable and awarded as prayed; the five unsettled issues were treated as dropped. No costs order was made.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether to enter an award by consent in terms of the parties' memorandum of settlement covering issues Nos. 7, 9, 12, 11, 1, 10 and 4
  2. 2.What treatment to accord the unsettled issues Nos. 2, 3, 5, 6 and 8

Key legal issues

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01

Whether an award by consent should be entered on the settled issues

Holding

The court entered an award by consent in terms of the memorandum of settlement, finding the terms fair and reasonable

Reasoning

The parties, through their signed memorandum of settlement covering seven of the twelve issues in dispute, jointly prayed that an award be entered on consent. The judge examined the terms - wage increases, housing, medical, leave travelling and night shift allowances, annual leave and death benefits - and concluded they were fair and reasonable, adopting them as the award of the court.

p. 1
02

Treatment of issues not covered by the settlement

Holding

Issues Nos. 2, 3, 5, 6 and 8 (sick leave, redundancy, retirement, termination of employment and minimum wage) were treated as dropped

Reasoning

The memorandum of settlement addressed only seven of the twelve issues in dispute. As the parties made no provision for the remaining five issues and were silent on them, the court treated those issues as abandoned rather than adjudicating them on the merits.

p. 2

Legal principles established

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  • A court may enter an award by consent where the parties present a signed memorandum of settlement whose terms are fair and reasonable

Court orders

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  1. 1.Award entered by consent in terms of the memorandum of settlement: general wage increase of 6% for the first year and a further 6% for the second year
  2. 2.Housing allowance of Kshs. 1,400/= for the duration of the CBA
  3. 3.Medical treatment as per Medical Treatment Rules (1977)
  4. 4.Leave travelling allowance of Kshs. 1,300/= for the duration of the CBA
  5. 5.Annual paid leave of 23 working days per annum
  6. 6.Night shift allowance of Kshs. 20/= per night shift worked
  7. 7.Employer to contribute Kshs. 11,000/= towards funeral expenses in the event of death of an employee; remaining clauses of the CBA retained as per the outgoing CBA
  8. 8.Issues Nos. 2, 3, 5, 6 and 8 treated as dropped

The bench

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One judgment of the whole court — no separate or dissenting opinions.

CC
majority

Wrote the judgment

Jurisdiction invoked
Trade Disputes Act, Cap. 234, Section 14(9)(e) - Notification of Dispute with statutory certificates from the Labour Commissioner

Relief refused

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Sick Leave (issue No. 2)

Not covered by the settlement and treated as dropped

p. 2

Redundancy (issue No. 3)

Not covered by the settlement and treated as dropped

p. 2

Retirement (issue No. 5)

Not covered by the settlement and treated as dropped

p. 2

Termination of Employment (issue No. 6)

Not covered by the settlement and treated as dropped

p. 2

Minimum Wage (issue No. 8)

Not covered by the settlement and treated as dropped

p. 2

Costs

No costs order made in the judgment

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In my humble view, the terms of the settlement are fair and reasonable, and I award as prayed for in terms thereof.
p. 2Award by consent
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.
p. 2Unsettled issues treated as dropped
6% for the first year and a further 6% for the second year.
p. 2General wage increase
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.
p. 2Death benefit and retention of outgoing CBA clauses

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "TAILORS & TEXTILES WORKERS’ UNION v NGECHA INDUSTRIES LTD (Cause 86 of 2003) [2004] KEELRC 9 (KLR)", Case Analysis (2004). Cause No. 86 of 2003. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2004/9/eng@2004-07-27

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